When to Consider Debt Consolidation (and How To Determine When to Avoid It)

The template below, and related guide, helps you to visualise your debts and make a plan using https://chat.openai.com/

More details: https://www.moneyhub.co.nz/dangers-of-debt-consolidation.html

Template for Calculating Debt Payments and Consolidation Savings

Hello, I need help calculating the costs of some debts and comparing them to a consolidation offer. Here are the details:

1. Credit Card Debt:
Principal: [Amount, e.g., $10,000]
Annual Interest Rate: [Rate, e.g., 24%]
Term: [Years to pay off, e.g., 3 years]

2. Car Loan:
Principal: [Amount, e.g., $18,000]
Annual Interest Rate: [Rate, e.g., 13.50%]
Term: [Years left, e.g., 2 years]

3. Personal Loan:
Principal: [Amount, e.g., $12,000]
Annual Interest Rate: [Rate, e.g., 18.99%]
Term: [Years to pay off, e.g., 2 years]
Debt Consolidation Offer:

4. Consolidated Principal: [Total of all debts, e.g., $40,000]
Consolidation Interest Rate: [Rate, e.g., 17.99%]
Term: [New loan term, e.g., 5 years]

Please calculate the total cost of paying these debts separately and the total cost if consolidated. Let me know which option is cheaper and by how much.

Related Guides:
https://www.moneyhub.co.nz/dangers-of-debt-consolidation.html
https://www.moneyhub.co.nz/credit-card-debt-amortisation-calculator.html

Keywords:
Debt consolidation, managing debt, personal finance, financial tips, debt management, debt consolidation benefits, debt consolidation risks, debt traps, improve credit score, personal loans

Видео When to Consider Debt Consolidation (and How To Determine When to Avoid It) канала MoneyHub New Zealand