Frequently people wonder what savings can be got by arranging debt consolidation loans This is an impossible question to reply to without taking stock of a number of factors. The first thing to take into account is how many credit cards exist and are there any personal loans or home improvement loans and what the interest rate is for the credit cards and loans Anther matter is what form the debt consolidation will take.
People who have a number of credit cards, hire purchase agreements, and so on should always consider debt consolidation loans . Life becomes very mixed up when numerous debts have to be paid weekly and several times a month or even several times a week in the course of a month.
Debt consolidation loans relieve the problem of struggling with too much debt
How much can be saved as already mentioned relies on the level of debt involved .
Credit cards have extremely high interest rates usually of at least 20% APR to 40% or even more and the minimum repayment required every month is 3% of the balance outstanding on the cards.
Credit cards with a balances of 50,000 would have a minimum payment each month of 1,500 and according to the experts paying the minimum each month means that the cards will not be paid off for about 26 years.
This really does sound terrifying and it is a situation that must be confronted.
By arranging secured loans for debt consolidation of 30,000 worth of credit cards, the secured loan will cost about 400 monthly for ten years depending on individual circumstances and that will be the end of the debt, where as without debt consolidation the debt will continue for another 16 years
Remortgages can also be used as debt consolidation loans and as remortgage interest rates are even lower than secured loans even greater savings can be made.
People who have a number of credit cards, hire purchase agreements, and so on should always consider debt consolidation loans . Life becomes very mixed up when numerous debts have to be paid weekly and several times a month or even several times a week in the course of a month.
Debt consolidation loans relieve the problem of struggling with too much debt
How much can be saved as already mentioned relies on the level of debt involved .
Credit cards have extremely high interest rates usually of at least 20% APR to 40% or even more and the minimum repayment required every month is 3% of the balance outstanding on the cards.
Credit cards with a balances of 50,000 would have a minimum payment each month of 1,500 and according to the experts paying the minimum each month means that the cards will not be paid off for about 26 years.
This really does sound terrifying and it is a situation that must be confronted.
By arranging secured loans for debt consolidation of 30,000 worth of credit cards, the secured loan will cost about 400 monthly for ten years depending on individual circumstances and that will be the end of the debt, where as without debt consolidation the debt will continue for another 16 years
Remortgages can also be used as debt consolidation loans and as remortgage interest rates are even lower than secured loans even greater savings can be made.
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Want to find out more about debt consolidation then visit Champion Finance's site on how to choose the best remortgages for you.
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