Debt Consolidation Explained With Free Tips
Thanks for visiting this webpage, here is the definition of debt consolidation explained. Debt consolidation is when you have a bunch of debt and you want to consolidate your debt into one payment.
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Let’s say that John has 3 credit cards and he wants to consolidate his credit card debt. The reason he wants to do this is because he sees that when he pays minimum payments it seems to take forever to pay the debt back.
Example of Debt
Credit Card 1 - $10,000 of debt at 16% annual percentage rate (APR) and the minimum payment is $100 per month. Every time $100 is paid only $25 goes towards the main balance reducing the debt by only $25.
Credit Card 2 - $2500 of debt at 12% annual percentage rate (APR) and the minimum payment is $30 per month. Every time $30 is paid only $12 goes towards the main balance reducing the debt by only $12.
Credit Card 3 - $1000 of debt at 20% annual percentage rate (APR) and the minimum payment is $20 per month. Every time $20 is paid only $7 goes towards the main balance reducing the debt by only $7.
John wants to consolidate these three credit cards into one payment with a decent annual percentage rate (APR), and payment plan for (4 years) 48 months. After shopping for about two weeks, John finds a great consolidated debt plan. The loan officer at the Credit Union helps John and answers his questions with a program called debt consolidation explained.
This program has an annual percentage rate (APR) of 10% with a payment of $125 for 60 months. John was looking for 48 months of payments, but since the interest rate is low enough and the payment is $25 lower then his other payments, John decides to settle for the 60 months (5 years) of payments.
As you can see from the example above using the debt consolidation explained program you will be able to find what you are looking for when it comes to debt consolidation. Take a look at some of the ads on this page to start with, those companies may be able to help you with consolidating your debt.
See the links below for more information about consolidating your debt and getting free tips about money.
Debt Consolidation and Management Tips For Your Money
Debt Consolidation Help Service
Debt Consolidation Pros and Cons
Eliminate Credit Debt
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