Debt consolidation loans

We provide online debt consolidation loans

If you are short on your budget, perhaps consolidating your debts is a way to save. Find out here if online debt consolidation loans are the option for you. Lowering the amount you pay monthly in debt is easier than you think. There are services in which we can make some adjustments to pay less (water, electricity, telephone, etc.). There are other payments such as the furniture loan, the payment of store credit cards, and other debts in which you can do something to lower the amount you pay each month.

For example, if paying your credit cards you are one of those who make the minimum payments, perhaps you have not verified how much your balance due has actually gone down, to estimate if paying a little more is the most convenient for you.

We recommend you do the exercise of consolidating your debts, and you could discover a new financial opportunity for your benefit. A personal loan could help you reduce the number of creditors. By paying a single financing interest, you can save the interests of different creditors. In the end, you could only have one monthly payment and depending on the loan amount, reduce the time you would pay the consolidated amount of all your debts.

To know if this is an option for you, you should look closely at your finances. Alberto Paanan, Director of Financial Education at Cruel Bank. Jason Porcht recommends that you first establish what your goal is; In this case, shorten the debt time or reduce the monthly payment.

Know the debt you have with each creditor.

You can find the information in the credit card statements or in the contract you signed when you were granted a loan. If you do not have them at hand, call each trade, bank and cooperative with which you have debts that you want to consolidate.

Review the interest rate you have with each creditor. Calculate the due date of each debt. Add all debts, so you have the real balance in black and white. Evaluate the loan options that J. Jason Porcht offers you to consolidate the total balance of your debts. Ask the average interest rate and the number of years if you make the minimum payment. This way you will know if the transaction suits you or not.

A young professional has three debts that he wants to consolidate: a personal loan and two credit cards.

money loan

Debts

Total to pay Monthly payment Interest rate Pending payments

Personal loan

$ 11,550.00

$ 350.83

10.50%

39 months

Credit card

$ 8, 447.03

$ 169.00

16.99%

87 months

Store Card

$ 492.71

$ 25.00

24.55%

25 months

Total debts $ 20,489.74 $ 544.83

The interest of a new loan to consolidate will depend on the score and credit history of the young person. If the young man consolidates his debts with a loan for $ 20,500.00, seven years, with an interest rate of 7.49% APR (Annual Percentage Rate ), he would pay $ 314.33 per month. If the loan is approved with a 13.50% APR, your monthly payment would be $ 378.53, for the same term of years. The young man would have a minimum savings of $ 166.30 ($ 544.83 that he pays to the present - $ 378.53 that he would pay at 13.50% APR). This would allow you to have more money in your pocket. It all depends on interest, because the higher it is, the less money you will have available to save.

The exercise also demonstrates that the consolidation loan would allow you to shorten the payment time of one of the credit cards or extend it.

money loan

For example, according to the table, if you make only the minimum payments to the bank's credit card, you will pay it in about 87 months; while with the consolidation loan the time will be reduced to 84 months (7 years). However, if the young person makes adjustments, he could very well settle his store card in a few months, without having to include it in the consolidation loan whose interest could be higher than the rate of his current personal loan.

As you can see, the important thing is that you carry out the exercise with each of your accounts and discover what your financial picture really is. A loan to consolidate could help you have a lower monthly payment and even shorten the payment time. The important thing is that you use the money you save for what you need or invest in what you like and not to re-engage in many debts that do not allow you to float.