Having a number of loans invariably will cost a lot of money. Consider the real life scenario below:
|
Weekly ($) |
Monthly ($) |
|||
| Home Loan | 200,000.00 | 425.00 | 1,841.67 | |
| Credit Card | 8,000.00 | 55.43 | 240.00 | |
| Car Loan | 20,000.00 | 115.47 | 500.00 | |
| Personal Loan | 15,000.00 | 78.75 | 341.00 | |
| Total | 243,000.00 | 674.65 | 2,922.67 |
Refinancing all these commitments into a new home loan with the lowest possible rate, these borrowers are able to save $1,004 per month. With that extra money, they can now breath a bit more easily as well as making additional repayments to actually pay off their loan sooner. Re-financing and consolidating all their debts gives them better options. (This scenario is an example only, not a true account as we respect our customers' privacy)
