Debt Consolidation
It could start off with an offer from a credit card company for 10 months
interest free.
The 10 months have passed and now the payment has jumped up. Then the washing machine finally dies,
the transmission on your car needs replacing, or someone in your household
misses some work due to an illness.
Did we mention the extra medical bills too? All of a sudden you’re carrying a large amount
of debt on credit cards. The monthly payments are annoying and it seems
that no matter how much you pay it never goes away.
You could be a candidate
for a debt consolidation loan.
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The
purpose of a debt consolidation loan is to take consumer loans that are
at a higher rate of interest and place them under the umbrella of a home
mortgage, at a lower rate. This has
three positive aspects and one additional consideration.
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First,
the overall cash outlay for your household will go down.
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Second,
interest payments on a mortgage are generally tax deductible, which may
reduce your yearly IRS tax bill.
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Third,
the interest rate on the mortgage is usually lower than the rate being
paid on the credit cards.
The other
point to consider is that you could be placing debts for short-term items
(vacations, clothes and other items) under a long-term obligation.
This factor may or may not be in your best interest. If you are paying
just the minimum payment on your credit card it generally take about 25
years to pay off the note!
Discussing this point with
your Ameritime Mortgage Company loan officer will be in your best interest.
Here is an Example
of How a Debt Consolidation Loan Could Work for You.
| ITEM |
BALANCE |
RATE |
PAYMENT |
| Mortgage |
$ 85,000 |
6.875% |
$ 558.40 |
| Providian Credit Card |
$ 4,000 |
18% |
$ 100.00 |
| Chase Credit Card |
$ 2,000 |
15% |
$ 25.00 |
| Household Note |
$ 18,000 |
12% |
$ 350.00 |
| TOTALS |
$109,000 |
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$1,033.40 |
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After
Debt Consolidation
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| New Mortgage |
$ 113,000 |
6.875% |
$ 742.32 |
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SAVINGS
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$ 291.08 |
The increased amount reflects
closing costs and some cash in hand.
This shows a savings of
$291.08 per month. By increasing the payment to $867.63 it will pay off
the mortgage 10 years sooner and STILL save $165.77 a month.
There are many different
ways to structure a debt consolidation loan. When discussing your
needs with your Ameritime Mortgage Company representative, be sure to tell them what your exact
goals are so we can incorporate them into your program.
What is the First Step for You to Save $100s?
Fill Out Our Online Credit Assessment Form
Secure-Server Form - Your Privacy is Utmost
This Will Enable Us to Assess What Loan Program is Best for You.
No Obligation - Takes About 5 Minutes
See How Much of Your Money We Can Save You!
Go
There Now ---->
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