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Debt or Loan Consolidation |
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What is Debt (Loan) Consolidation?The Object of Debt/Loan Consolidation is to take you high interest loans and bring them into one low interest loan. The benefit of Consolidating is that it reduces the overall payment and hence the stress of maintaining high interest payments. Example 1: Jan and John are looking to consolidate all there loans in to one facility. Is this a viable option? | Type of Loan | Remaining to Pay | Interest Rate | Monthly Repayments | | Home Loan | $150,000 | 6.9% | $1051 | | Car Loan | $20,000 | 9.0% | $415 | | Credit Card 1 | $9,000 | 16.5% | $240 | | Credit Card 2 | $6,000 | 14% | $200 | | Personal Loan 1 | $19,000 | 12.5% | $427 | | Personal Loan 2 | $15,000 | 14% | $349 | | Total | $219,000 | | $2682 |
After Consolidating: | Type of Loan | Remaining to Pay | Interest Rate | Monthly Payment | | Home Loan | $219,000 | 7.6% | $1633 |
After debt consolidation John and Jan's monthly payments are reduced from $2,682 per month to $1633 per month. Saving $1049 each month. Lenders look closely at all your debts when consolidating. Loan Saver Network will look at your individual situation and provide clear advice, guidance and assistance to help you move forward and where possible obtain the funds you need.
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