debt consolidation

Notes:
understanding debt ratios

Notes:
consolidation worksheet

STEP 1: IDENTIFY LOANS TO REDUCE

Personal Unsecured Loans:

• loans used to make small purchases, consolidate debt, and for personal use
• generally small loans with balances from $2,500-10,000
• interest rates on these loans should be quite high (3 or more points above the prime rate: view prime rate
• terms on these loans vary from 3-7 years.

Auto Loans:

• auto loans for both new and used purchases
• loan balances should be at least $2500 or more
• interest rates on these loans should be at least 2 or more points above the prime rate: view prime rate
• the remaining term on these loans should be for 2 or more years.

Retail Loans:

• loans used for purchasing furniture, appliances and other big retail items
• loan balances should be at least $2,500 or more
• interest rates on these loans should be at least 2 or more points above the prime rate: view prime rate
• the remaining term on these loans should be for 2 or more years.
  

RV Loans:

• loans used for purchasing recreational vehicles
• loan balances should be at least $2,500 or more
• interest rates on these loans should be at least 2 or more points above the prime rate: view prime rate
• the remaining term on these loans should be for 2 or more years.

Student / Education Loans:

• two types of student loans:
  
1. federal student loans that include Stafford, PLUS, Perkins and other federal student aid programs
2. private education loans that were obtained from private lenders
   
   
• federal student loans should be consolidated under the federal consolidation program to receive the maximum benefit: view our federal student loan consolidation program
  
  
• private education loans can be consolidated with your other loans
• loan balances should be at least $2,500 or more
• interest rates on these loans should be at least 2 or more points above the prime rate: view prime rate
• the remaining term on these loans should be 2 or more years.

Credit Cards:

• open credit card balances can be consolidated with other loan balances
• interest rate charges on open credit line balances should be at least 2 or more points above the prime rate: view prime rate
  

Debts and Liens:

• medical and dental expenses
• government and court liens
• support payment liens
• other imposed debts

Additional Information about Credit Management at our affiliated site: SayPlanning.com

Notes:
understanding debt ratios

Notes:
consolidation worksheet

STEP 2: ADD IT ALL UP

Use the worksheet below to list and total your loans for consolidation:

Additional Information about Maintain Good Credit at our affiliated site: SayPlanning.com

STEP 3: PAY IT OFF

• Analyze Your Pay Off Options:
  
  Option 1: use a group payoff plan to pay down quickly
  
  Option 2: consolidate your loans into one low payment
  
  Option 3: seek debt counseling help
  
  Need Debt Relief now? We can help.
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Additional Information about Maintain Good Credit at our affiliated site: SayPlanning.com

Notes:
understanding debt ratios

Notes:
consolidation worksheet

STEP 4: SCHEDULE YOUR PAYOFF

Analyze your repayment options:

1. calculate the number of years you need to pay off your debt:
   
   — enter the best interest rate you can receive
   — enter the number of years you need to repay the debt
   — press "calculate" to estimate repayment amount
   
   
2. enter the amount you can afford each month and determine how long it would take to pay off your debt:
   
   — enter the best interest rate that you can receive
   — enter the amount you would like to pay
   — press "calculate" to estimate payoff terms
   
   Use can also download our "debt payoff" worksheet to run your numbers on your desktop: download worksheet
   
   

Monthly Payment Repayment Period Debt Balance: $ Debt Balance: $ Interest Rate: % Interest Rate:   % Repayment Term: months Monthly Payment: $ * * Monthly Payment: $ Repayment Period:   years months

Additional Information about Maintain Good Credit at our affiliated site: SayPlanning.com

Notes:
understanding debt ratios

Notes:
consolidation worksheet

STEP 5: MANAGE YOUR CONSOLIDATION LOAN

Key points:

• Pay your consolidation loan payment on-time, every time. Keep your credit report strong. Never be late with your monthly payments.
  
  
• Do not take on any new loans. Schedule to pay off your existing loans before assuming any new debt.
  
  
• Budget your family expenses so that any savings can be used to eliminate your debt.
  
  
• We have additional information at our parent site SayPlanning.com:
  
  keeping your credit report strong
  
  budget and money management
  
  lowering your monthly expenses

Additional Information about Maintain Good Credit at our affiliated site: SayPlanning.com