Debt Consolidation - Finance Article
If you are like the majority of Australians, you have more than 2
credit cards and store cards with high balances, a car loan and a
mortgage. This can place a lot of strain on the household budget and
may mean that you are constantly juggling money to 'stay afloat'.
The answer may be a debt consolidation personal loan. Here is an example of
how you could free up additional money:
Bill has 3 different monthly repayments to make:
| Type of Loan |
Balance Due |
Interest Rate |
Monthly Payments |
| Car Loan |
$25,000 |
13.75% |
$583 |
| Credit Card #1 |
$11,000 |
15.00% |
$220 |
| Credit Card #2 |
$8,000 |
16.95% |
$160 |
| TOTALS |
$44,000 |
|
$963 |
If Bill consolidated all of these debts into a personal loan,
based on an 11% p.a. interest rate over 7 years, the following
result occurs:
| Type of Loan |
Balance Due |
Interest Rate |
Monthly Payments |
| Personal Loan |
$44,000 |
11.00% |
$764 |
By consolidating his car loan and 2 credit cards, Bill has freed
up approximately $200 per month - or an additional $50 per week.
Consider your current financial situation - can I
afford this?
Check Comparison Rates for the cheaper loan
Is it a Fixed Rate or Variable Rate loan?
Look for other fees and charges including
termination fees
Try paying a little more than the minimum payments
Make your payments weekly or even monthly in
advance
Always and we stress; ALWAYS read the Terms &
Conditions
I'm ready
to check out some Personal Loan offers!
