Information on consolidating your dept
If you’re talking to a lender about debt consolidation, ask them to provide you with the loan’s APR.
Often, once the origination fees, underwriting fees, and more are added into the cost of capital the loan consolidation may not save you as much money as you thought it would.
You can pay off higher interest-rate debt with your consolidation loan and save money on interest and other fees.
Because less of your monthly payment goes to paying interest, you can pay down the principal balances faster.
Make sure to get a full and complete list of all fees before deciding on a loan.
Being able to compare the APR between your current loan products and the debt consolidation product that you’re considering will help you make a wise decision.
If a bank advertises 5.5% on their website, read the fine print. An Annual Percentage Rate, or APR, is more reflective of your true cost of capital.
It blends together the simple interest rate, fees, and other costs to the loan to give you a more accurate representation of the loan’s true cost.
A simple interest rate is the pure interest rate you’ll pay on your loan’s capital.If you have a loan or credit card that has a variable rate, typically based upon Prime or LIBOR, your monthly payment can fluctuate. When you consolidate debt into a fixed-rate debt consolidation loan your monthly payment won’t fluctuate.It makes budgeting and planning to pay off the loan’s principal easier.Because you need capital to grow, you may open a small business credit card or a line of credit, or take out a short-term loan.After a while you may find yourself with multiple loan payments to juggle every month.