How much can loan consolidation reduce monthly installments and costs?
This is what many will certainly be considering when planning a loan consolidation. We did some calculations on how big a difference a single loan can make instead of many smaller ones, and how it makes your financial management easier.
When you pay off several small loans at once, they accrue interest and expense on each of them separately. The monthly installment may quickly become very large, but each loan must be repaid a certain amount each month.
Example of a loan consolidation
We calculated an example of a loan calculator that combines 3 previous loans into one and how it affects the interest and costs of a loan.
Our customer had a loan of USD 10,000. It consisted of the following types of loans:
- Consumer credit 5000 USD. Payment period 54 months. Monthly payment USD 181.17. Annual percentage rate of charge 39.49%
- Flexibility credit 3000 USD. Payment period 12 months. Monthly payment 388 USD. Current Annual Interest 138.45%
- Flexibility credit 2000 USD. Payment period 12 months. Monthly payment 257.25 USD. The annual percentage rate of charge is 135.62%.
Thus, our client paid USD 826.42 per month for loan repayments. A considerable amount of the monthly installment also consisted solely of interest on loans.
When the customer combined the loans at our service, the new loan was as follows:
- New consolidation loan USD 10,000. Payment period 60 months. Monthly payment: 217.50 USD. The annual percentage rate of charge is 11.76%.
So the monthly installment decreased by about 609 dollars! The annual percentage rate of charge was also significantly reduced, resulting in significantly lower interest rates on the loan and other charges.
I want to save on my loans, but how do I combine the loans?
It’s very easy!
Add up all your loans so you know how much you need to match all of your loans.
Then apply for a loan on our website. We compete for the best loans for you through up to 25 banks and other financial services.
You will then receive loan quotes that you can immediately compare. Always remember to compare loan offers first and then decide which one to choose.
Once you find the best loan, you can approve it and then it will be paid into your account. Then pay off all your previous loans, leaving you with just one cheap loan.
Combining loans can reduce your monthly installment, as well as other loan interest and costs, so you no longer pay unnecessarily.
It also makes it easier to manage your finances when you no longer need to memorize the monthly installments and maturities of each loan, but focus on paying off a new loan.
You can also save your loans by bidding again
save your loans by bidding again” />
Even if you have no previous loan, you can still save on interest and expenses.
You can always request new loan offers and see if you could get a cheaper loan to replace the previous one.
Asking for loan offers is completely free and does not bind you to a loan yet. You can compare your offers and if you can’t find a better deal, you know at least that you have the cheapest loan available right now.
However, if you find a cheaper loan, you can accept it and pay off your previous loan. This way, you save your loans on interest and expenses – and it cost you nothing.