Help consolidating debt

If you were to pay off each credit card separately, you would be spending 0 per month for 28 months and you would end up paying a total of around ,441.73 in interest.However, if you transfer the balances of those three cards into one consolidated loan at a more reasonable 12% interest rate and you continue to repay the loan with the same 0 a month, you'll pay roughly one-third of the interest (

If you were to pay off each credit card separately, you would be spending $750 per month for 28 months and you would end up paying a total of around $5,441.73 in interest.However, if you transfer the balances of those three cards into one consolidated loan at a more reasonable 12% interest rate and you continue to repay the loan with the same $750 a month, you'll pay roughly one-third of the interest ($1,820.22), and you will be able to retire your loan five months earlier.This works out to $2,371.84 being paid in interest.

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If you were to pay off each credit card separately, you would be spending $750 per month for 28 months and you would end up paying a total of around $5,441.73 in interest.

However, if you transfer the balances of those three cards into one consolidated loan at a more reasonable 12% interest rate and you continue to repay the loan with the same $750 a month, you'll pay roughly one-third of the interest ($1,820.22), and you will be able to retire your loan five months earlier.

This works out to $2,371.84 being paid in interest.

The monthly savings is $115.21, and over the life of the loan, the amount of savings is $2,765.04.

These organizations do not make actual loans; instead, they try to renegotiate the borrower’s current debts with creditors. The Internal Revenue Service (IRS) does not allow you to deduct interest on any unsecured debt consolidation loans.

If your consolidation loan is secured with an asset, however, you may qualify for a tax deduction.

,820.22), and you will be able to retire your loan five months earlier.This works out to ,371.84 being paid in interest.

These loans usually are offered by financial institutions, such as banks and credit unions, but there also are specialized debt-consolidation service companies.

This amounts to a total savings of ,371.51 (,750 for payments and ,621.51 in interest).

Of course, borrowers must have the income and creditworthiness necessary to qualify with a new lender, which can offer them at a lower rate.

Favorable payoff terms include a lower interest rate, lower monthly payment or both.

There are several ways consumers can lump debts into a single payment.

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