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How To Save
With Debt Consolidation
Debt Consolidation
is designed to reduce the number of monthly payments you need to make as
well as the interest rate applied to your outstanding debts. Instead of
making numerous high interest payments - you only have to make one low
interest payment. This can help people manage their finances more
effectively.
Debt Consolidation Example:
|
Type Of
Loan |
Remaining To Pay |
Interest Rate |
Monthly
Repayments |
|
Mortgage |
$150,000 |
6.9% |
$1,051 |
|
Car Loan |
$20,000 |
9.0% |
$415 |
|
Credit Card 1 |
$9,000 |
16.5% |
$240 |
|
Store Card |
$6,000 |
14.0% |
$200 |
|
Personal Loan 1 |
$19,000 |
12.5% |
$427 |
|
Personal Loan 2 |
$15,000 |
14.0% |
$349 |
|
Total: |
$219,000 |
--- |
$2,682 |
By consolidating his debts,
Peter’s monthly payments are reduced from $2,682 per month to
$1,049 per month. He is saving $1,633 each
month.
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