Chapter 12. Consolidate your debt.
If you have “expensive debt” such as credit cards or personal loans, consider consolidating these loans into your mortgage. This will free up cash that is currently being used to service expensive debt and help reduce your debt faster. For example:
| Description |
Outstanding
Amount |
Annual Interest
Rate |
Monthly
Repayment |
Mortgage |
$400,000.00 |
7% |
$2,333.33 |
Credit Cards |
$12,000.00 |
18% |
$180.00 |
Car Loan |
$20,000.00 |
9.50% |
$158.33 |
Personal Loan |
$15,000.00 |
11% |
$137.50 |
|
$447,000.00 |
|
$2,809.17 |
After Consolidation
| Mortgage |
$447,000.00 |
7% |
$2,607.50 |
Saving is $201.67 per month
Or $2,420.00 per annum.
(I know that $2,420 per annum for my benefit is better than giving it away for nothing!) |
