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 Posted: Fri Feb 01, 2008 12:27 am Subject: Best way to pay (??) |
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I have just paid off $27,000 in credit card debt (yeah!) and I am now ready to take on the student loans. I owe a total of $95,000 in student loan debt to 3 different agencies. I am working at a job in the Middle East (a safe country - Oman) which allows me to pay US$2,500 per month on debt back home in the good ol' USA. According to the debt calculator, it will take me 44 months to pay back the debt for a total payback of $110,000.
Here's the question - does debt consolidation raise or lower the interest rate? Would I be better off paying them individually (SL#1 = $27,000 at 8% interest, SL#2 = $60,000 at 7.22% interest, and SL#3 = $8,000 at 7.22% interest) or roll them up into a consolidation package and one payment? Which plan would give me the overall least amount of payback? Thanks!
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doctorbrowder
Joined: 19 Dec 2007
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| Posted: Fri Feb 01, 2008 6:56 am Subject: |
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Consolidation interest rates are based on a weighted average of all your loans. Most lenders offer a rate reduction for automated payments. However to consolidate, you do need a US address for billing purposes.
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SOAPLADY
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| Posted: Wed Feb 13, 2008 1:45 am Subject: |
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hi! whether you opt for a debt settlement or debt consolidation, you will definitely have to pay back less than what you pay individually. in case you have any extras like late fees etc, those too get deducted under such a program. so you have to pay much less than what you actually owe. but then you need to check that whether it can be worked out with student loans or not!
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laurel188
Joined: 16 Jan 2008
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SOAPLADY
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