There are times in everyone’s life when the requisite to cut down their monthly outgoings becomes pressing.

You may feel that you need to cut down on how much you spend monthly due to a cut in the household income.

There can be numerous reasons for this, eg. if you decide to start a family which would mean that for the foreseeable future there will be one less income coming in to pay household bills, etc.

One person being made redundant could be another accute reason for savings to be made.

In this time of international recession, many people are finding it very difficult to manage their finances.
The question of how to save money and how much they can save has become more accute than ever in their financial history.

Once having given careful consideration to the real need for savings, an excellent way to go down the route to savings is by taking out a consolidation loan.

To really acurately answer the question of how much you can save with a consolidation loan is very much like asking how long is a piece of string.

How much you can save depends on a number of factors, such as how much debt you already have on credit cards, personal loans, homeimprovement loans, etc, and of course what the interest rate is for these financial outgoings.

If you only have say two or three credit cards with a few hundred pounds in balances, the savings would not be great, and in fact taking out a consolidation loan may not really be of any benefit.

If, however, you have a number of credit cards with high balances, personal loans, homeimprovement loans etc., the savings can be enormous.

If you have a credit card with a three thousand pounds balance, another with a balance of eight thousand pounds, a third with a balance of eleven thousand pounds and two others with their balances totalling eighteen thousand, the minimum you would have to pay each month would be one thousand two hundred pounds.

If you do make only the minimum payment every month, you will notice that when you receive your credit card statements that the balances have hardly decreased.

This is because the interest rates on credit cards are over 20% APR to over 40% APR.
Experts reckon that if you only make a minimum payment monthly it would take about twenty six years to pay off your cards.

Taking out a consolidation loan of forty thousand pounds to pay off your cards would have an interest rate starting at 8% APR, and this consolidation loan would cost you slighly less than five hundred pounds per month over a ten year repayment period
This is no small saving!!

In fact it may seem too good to be true, but true it is.

If you have a homeimprovement loan of say fifteen thousand pounds this could be incorporated into your consolidation loan, and even more savings could be had. A homeimprovement loan, if arranged through the homeimprovement company, would normally have an interest rate of about 25% APR.

A consolidation loan if you have numerous outgoings can save a huge amount of money monthly, and with that saving comes peace of mind.

Champion Finance has been established since 1985. We arrange homeowner loans for consolidation,etc. etc from a panel of lenders and as such have plans for all circumstances. Whole of market mortgages and remortgages available from all major lenders.
Trust Deeds, Debt Management and IVA’s also available. Our author, Liz Moir, is an experienced secured loan and remortgage underwriter with Champion Finance.

consolidation loans

[tags]consolidation loan, homeowner loans, secured loans.[/tags]