Consolidation Loans
January 21st, 2008
Borrow a large sum of money to pay off a number of smaller debts. This will normally be over a longer term and at a cheaper rate (subject to status). This can reduce your monthly payments and make budgeting much easier. Just look at the example below.
| Bank loan | A?3000 Balance | A?125 per month |
| Credit Card | A?5000 | A?150 |
| Credit Card | A?7500 | A?225 |
| Storecard | A?1000 | A?50 |
| TOTAL | A?16500 | A?550 Per month |
If you borrow A?20,000 over 10 years at a typical A.P.R of 9.7% your monthly payment would be A?257.00 (A?296.83 with PPP). Reducing your payment by nearly A?300 AND giving you an extra A?3500 to spend now.