Save Money With A Debt Consolidation Loan|

97 Years to clear a credit card debt!

If you have amassed debts on credit cards and store cards, you might be in for a surprise when it comes to working out when you will pay off your debts.

Most credit cards charge just enough on the monthly repayment to cover the interest chargeable for that month. Very little of the capital borrowed is paid off thus ensuring that you continue paying the interest over a very long period of time. On a statement i saw recently a £5,848 pound balance was incurring a monthly payment of £120.64. The interest charged for the month was £115.64. This means that only £5 was going towards clearing the debt. At that rate, it would take 97 years to clear the credit card debt, assuming that no other cash was borrowed.

The majority of credit cards currently have an APR in excess of 16%. Store cards can be as high as 29%. If you have any of these, you would be well advised to consider refinancing all your credit card and store card debt into one cheap loan with one low monthly repayment. Not only will you save oodles of money on interest, but you wont run the risk of missing any of your monthly repayments, and you will pay back the loan in a pre-determined time, say 5, 7 or 10 years or whatever term you choose to take the loan over.
Debt consolidation loans work. They can save you cash and increment your monthly disposable income.

And you won’t have the debt for the rest of your life!

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