If you have been wanting to learn about debt consolidation, then this is the piece which is apt for you. Here, you will find everything related to consolidation. In addition to this, we have also shed some light on Missouri debt statistics. Thus, let us get going without any further ado.
To all those of you who are new to the term “debt consolidation”, it is explained as a procedure where you make use of one particular loan or credit card so that your previous loan amount can be paid back. Doing so will make it easy and hassle free for you to handle the debt repayment. Basically, instead of having one balance and not numerous, it becomes very easy to make sure that all your repayments are made. Moreover, you are also able to secure a lesser rate of interest from the lender itself.
Know how the procedure works
Picture this. You have been making use of a number of small loans and credit card balances. Not only this, you need to make so many payments every month that too at different rates of interest.
Credit Card A: $3,500, 24.90% APR
Credit Card B: $2,500, 18.90% APR
Credit Card C: $1,500, 12.00% APR
Now this is where you need to play smart. Rather than paying all the repayments one by one, you can consolidate all the balances. Wondering how? You can make one payment instead of three. Take this example into consideration. If you consolidate all the mentioned above balances into a $7,500 loan with 7.00% APR and make sure that the repayment is done in the coming four years, then you will have to pay $1,120,80 in interest. Did you understand?Well, it would take more than $5,440 in interest payments if you make four payments every single month. And, that’s not the end. You need to pay more for the next twelve years of your life.
Will you be charged to consolidate your debt?
That’s a big yes, says the Missouri debt statistics professionals. Usually, it all depends on the type of consolidation method you have selected. Go through the mentioned below fees to understand the procedure better.
- Lines of credits
- The final costs for loans related to mortgage
- Three percent to five percent balance transfer fees
- Origination fees for personal loans.
Ask for quotes from the lenders if you want to gather more details regarding the final credit. This way you will be able to compare the final interest rate and then take a decision.
The Final Thoughts
These are some of the factors you need to know about debt consolidation. If you want to learn more about the same or Missouri debt statistics, feel free to consult the professionals. They leave no stone unturned to meet your expectations yet fulfilling your requirements.