wp8ef5c215.png

  

   Monthly Commitments:     Interest Rate*     Debt Amount     Monthly Repayments

 

   Credit Card                              19.75%            $10,000                        $260

   Car Loan                                 16.95%            $15,000                        $368

   Personal Loan                          14.25%            $  5,000                        $116

 

  Total                                                                                                $744

wp174b6be4.gif
wpc2b253cf.gif
wpc2b253cf.gif
wpc2b253cf.gif
wp47ddc753.gif
wp47ddc753.gif
wp978bb858.gif

However, if Peter consolidated these debts into one loan over a five year term, Peter’s monthly payment is reduced to $694, which is a saving of $50 per month. If he had enough equity in his home to apply for a home equity loan instead of a personal loan, he can pay even less interest and save $114 per month. This would mean a saving of over $6,800 over the five year term.  If Peter put these savings back to the loan, he would find that he would pay off his debt in a much shorter timeframe, saving him even more in interest repayments.

  

   Loan Type:      Interest           Debt           Repayments      Savings      Savings

                         Rate*          Amount         $/ month           /month      over 5yrs

  Personal Loan   14.25%       $30,000              $694             $ 50          $3000

  Home Equity       9.80%       $30,000              $630             $114         $6840

wp174b6be4.gif
wp5b3cd1e5.gif
wpa3969dd2.gif
wp5b3cd1e5.gif
wp174b6be4.gif
wp174b6be4.gif
wpa3969dd2.gif
wpa3969dd2.gif

 

If you would like any more information on debt consolidation and how it could benefit you, simply fill out our online enquiry form and one of our helpful staff will be in contact soon.

 

 

* Interest Rate may vary depending on the actual product

 

Peter is paying off three different loans over a term of 5 years. In this example the table below shows Peter’s total Monthly repayment of $744.