Loan Consolidation takes all your current debts and combines them into a single new loan.
The new consolidated loan is presumed to have a lower overall interest rate than the
combined existing debts. It is the lower interest rate that makes loan consolidation so appealing--it results
in lower overall payments and less interest paid on the loan.
Credit cards typically have high interest rates associated with them while Bank or Credit Union loans usually
have much lower rates. It is therefore relatively easy to take all your credit cards balances, add them up,
get a new loan from a bank, and payoff your credit cards. The bank loan will save you money through interest
savings.
Debt Analyzer allows you to create loan consolidation schedules and will determine the amount of money you
can save by doing so. Several options are available to tailor the loan consolidation to your specific needs.
These options are made available through the loan consolidation method input field. Depending on the method
selected, you may have to enter a new monthly payment or the number of months in the new loan.
You save money by paying less interest for the consolidated loan.
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