Consolidating car payments

03-Mar-2020 12:26 by 6 Comments

Consolidating car payments

Don't consolidate just for the sake of consolidating. Your brain tricks you into thinking that consolidation means less.Most people think a consolidation loan means they'll pay less, but that may not be the case.

But we cannot stress the importance enough that you must not let your balances go back up. THIS SHOULD BE CLEARLY SPELLED OUT IN THE CONTRACT. If you don't know how to check their math and verify the monthly payments, don't sign the loan papers, you have no business taking out a loan.You should close out all the accounts you paid off with your consolidation loan, so you don't run up the balance again.Consolidation Plan: A "bill paying service" that has the influence to work with your creditors to reduce or eliminate your interest and late fees, and agrees to send them your payment every month.Consolidation Loan: A lender lends you money to payoff your bills.You payoff all your credit cards and other debt, now your payments have all been consolidated into just one monthly payment to the lender, hopefully at a lower average APR than your current bills.You pay more interest when your payments are stretched out to 60 months.

Your debts consist of: gas card with a balance of .0 at 18%Master Card balance of...,000 at 14%VISA balance of............... Your local bank charges 12% interest for home equity loans and has an 0 loan origination fee.,000 at 15.9%, and department store card of ,500 at 22%. Your strategy might be to borrow ,900 with an equity loan from the bank to payoff all your balances, and close out the accounts.Now you'll still owe ,900 but at a lower APR of 12%.Consolidation loans are not for everyone and can be dangerous if you aren't careful.There's a lot of people who don't pay attention when they consolidate their loans.Make sure your bank allows pre-payment and extra principal payments.