Post on 01-Aug-2020
transcript
How it works and a guideon things to avoid.
Avoid DebtConsolidation.
What is Debt Consolidation?
Things to consider first.
Debt consolidation is a debt restructuring process that involves combining all your loans into one existing loan. It’s offered as a ‘simpler’ and ‘easier’ to manage loan with one lower repayment and rate.
Banks want you to be in debt longer and when you consolidate you will be starting again. Finally, you can also be charged establishment and exit fees.
simplify.co.nz 0800 001 561
Separate vs Consolidated
That’s $2,282 more and another year of being in debt
T H E T R U T H A B O U T D E B T C O N S O L I DAT I O N
$10,000 Amount
Interest Rate
Monthly Payment
Total Monthly Payment
$20,000
Total Cost & Time
12% 10%
$517 $583
$1,100
$30,000
9%
$640
$640
Combined loans
$34,821in 41 months
$37,103in 58 months
Length Extended terms means extended payments, you’ll be in debt longer
Rate Low interest rates are usually promotional and rates can increase
Repayments Lower repayments almost certainly means you’ll pay more
D�’t pay m�e!