Duration of the consolidation program

Hi Kirk

Welcome to the forums.

The duration of the consolidation program is determined by the rate of interest that is being paid and the monthly payment that is set in the plan. The less you pay in the plan, the longer is the duration of the program. So, try to make larger payments to complete it at the earliest.

One more thing should also be thought before the plan is finalized. On credit card debt, if you just keep paying the MINIMUM BALANCE due on the principal amount of $8,000 at an interest rate of 13.9%, it will take 278 months to wipe off that particular debt account. Serious thought should be given here as $6,792.25 is spent in interest only. In this particular calculation, if you just add $100 to the minimum payments each month, you will be able to save quite a lot. The length of the program will be reduced to 33 months and you will pay $1,639.13 in interest.

This statistics shows that the more you add in your monthly payments, the less you spend in interests and also reduce the duration of the program altogether.

Regards
Roxette