1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair
Isaac).
2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% -
30%!
3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.
Advanced Debt Consolidation Calculator I
You'll get many debt consolidation companies
claiming they will "save you money and reduce your debt
by upto 50%." What they really mean by "saving you
money" is that they will lower your current monthly payments
by consolidating all of your debts into 1, but with a longer
amortization period. This means you will pay a lower monthly
payment but for a longer period of time (years). This actually
means you will end up paying more interest charges & fees
over the longer term but with a lower monthly payment every
month.
Use this advanced Debt Consolidation Calculator
Version I to determine whether the benefits of debt consolidation
really outweigh the costs over the longer term. Enter each
of your debts (#1 to #15) into the fields along with your
Current Principal Balances, Related Interest Rate, Current
Monthly Payment Amount and leave the rest to the calculator.
Click on "Compute Current Debt Cost" and this will
calculate all of your debts that you currently owe. Then,
enter the Interest Rate & Amortization term (# of months
or years) that your debt consolidation company is offering
you. Also, enter any costs of setting up your consolidation
account as well as lender fees, closing costs, etc.
