Consolidating debt bad credit history
This works out to ,371.84 being paid in interest.
The monthly savings is 5.21, and over the life of the loan the amount of savings is ,765.04.
One is to consolidate all their credit card payments onto one new credit card – which can be a good idea if the card charges little or no interest for a period of time – or utilize an existing credit card's balance transfer feature (especially if it's offering a special promotion on the transaction).
Of course, borrowers must have the income and credit worthiness necessary to allow a new lender to offer them at a lower rate.These loans are usually offered by financial institutions, such as banks and credit unions; there are also specialized debt-consolidation service companies.There are two broad types of debt consolidation loans: secured and unsecured.Even if the monthly payment stays the same, you can still come out ahead by streamlining your loans.Say that you currently have three credit cards that charge a 28% APR; they are maxed out at ,000 each and you're spending 0 a month on each card's minimum payment.
Consumers can use debt consolidation as a tool to deal with student loan debt, credit card debt and other types of debt.