consolidation example

how consolidation works

Most people have credit cards if not store cards and possibly some sort of loan or overdraft. The interest rates are often very high and with credit cards it does not take long to pay back vastly more in interest than the amount actually borrowed.

Add up all the amounts you owe together with the monthly repayments that you make and set them out in a table like that shown below. The following example is typical of the type of loans and amounts our clients look to consolidate.

Look at the following table.

consolidation example A
cut monthly outgoings by half

Consolidation is effected by borrowing an amount that will adequately cover all your individual debts and replacing them with one lower monthly repayment. In this example you would borrow £10,000 secured on your home at a much lower interest rate. This lower rate is of course subject to your own status and the amount of equity in your property.

This is what the repayments would look like and you can see what a difference there is.

consolidation example B
take an extra £5,000 in cash & still cut monthly outgoings in half

Following on with the consolidation example shown above you might wish to take out a further sum of £ 5,000 by way of an example to purchase goods or make home improvements.

In this case it is simpler to arrange this extra finance at exactly the same time as consolidating and the monthly repayments can be kept about the same by extending the period of the loan.

Again see how much the repayments will be and consider the benefits to you of having seriously lower monthly outgoings and having cash to spare.

total cost of each consolidation loan

You can work out the total cost of each loan simply by multiplying the monthly repayments and the term as follows.

Example A - £ 10,000 costs £205.61 x 60 = £12,864.00

Example B - £ 15,000 costs £186.72 x 120 = £23,154.00

no obligation so why not apply to consolidate

Take a look at our secure online homeowner application form. You can view it first without giving out any information whatsoever. There is space for you to list out the totals of each of your committments from credit cards to overdrafts.

Upon receipt of your fully completed online application we will be able to put forward a proposal for consolidation of your loans. Usually the saving in monthly outgoings are sufficiently attractive so that most clients go a ahead with a secured homeowner loan.

Remember you are under no obligation and there is no pressure to proceed so you have little to lose by applying online. This takes anything from 20 minutes upwards depending on how much you have to tell us and because you are not required to apply by telephone there is no pressure. Use this link to go back to the consolidation loans page.