Consolidating Loans: When It Helps and When It Doesn’t
One installment instead of several sounds simple, but it is not always the better deal.
What it means
Consolidation combines several commitments into one arrangement with one monthly installment, if a bank approves.
Possible benefits
Easier tracking, one due date, and in some cases a lower monthly installment.
Possible drawbacks
A longer period can raise the total you pay, closing existing commitments may involve fees, and approval is not guaranteed.
How to decide
Compare the total repayment, not only the installment, ask for the full schedule and all fees, and check the numbers against your budget.
Rates, fees and requirements are set by each bank and can change. Not sure how this applies to you? Request a call and we will go through it together.