This works out to ,136.88 being paid in interest alone over time.
If the same individual were to consolidate those credit cards into a lower-interest loan at an 11% annual rate compounded monthly, he or she would need to pay 2.16 a month for 24 months to bring the balance to zero.
These organizations do not make actual loans; instead, they try to renegotiate the borrower’s current debts with creditors.
You usually work with a debt-relief organization or credit-counseling service.
Should she take that ,000 debt and put it on her mortgage to consolidate it? You guys need to roll up your sleeves and get on a budget.
Leslie makes ,000 a year, and her new husband will make 0,000 a year. You have a huge income, so you should attack that debt and get it paid off very quickly. As a new couple, learn to work on a budget together and push things together.
Creditors are willing to do this for several reasons, including that it maximizes the likelihood of collecting from a debtor.
These loans usually are offered by financial institutions, such as banks and credit unions, but there also are specialized debt-consolidation service companies.