Question

Jamie Lee now has to juggle the three monthly credit card bills for each of the retailers where she purchased her home furnishings. She is interested in getting one loan to consolidate the three store consumer credit cards so she may make a single payment on the goods per month. Using “Your Personal Financial Plan” sheet 17, comparing the consumer loan options that Jamie Lee may consider. What are your recommendations for her to consolidate her monthly consumer charge bills?

Answer 1

Explanation:

With debt consolidation one can combine the credit bills and make single low interest payment. If Jamie Lee payment has different interest rates, different payment values and due dates then debt consolidation can be considered useful for ease of payments.

Decision by Jamie to make debt consolidation can be considered when the gross income is higher than the mortgage value, when cash is available to pay back the debts and pay the debts before the interest accumulates more than the principal amount. It is not suitable for huge amount of loans and bills.