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Author: trillis Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308684  
Subject: Consolidation Loan Date: 6/1/1998 1:40 AM
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I've got seven different loans at various interest rates I'm tackling right now. Here are the rounded balances and the interest rates:

1. $3900@8.0%
2. $2800@8.25%

3. $5500@8.25%
4. $2400@8.25%

5. $4000@8.25%
6. $5500@8.0%

7. $6200@8.98%

I can consolidate all of these loans with an 8.25% interest rate, but I'm not sure if that would help or hurt in the long run. Any advice or software recommendations? I can't seem to crunch the numbers and trust my own projections. I want to pay them off in three years or less. Thanks for any advice.
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Author: emtwo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1957 of 308684
Subject: Re: Consolidation Loan Date: 6/1/1998 8:10 AM
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I found a pretty cool shareware program, called Credit Analyzer 97, by Insight Software Solutions. In a nutshell, you enter all your credit data, and it will generate reports, such as amortization tables, payoff dates, total interest etc...
The neat feature is its ability to track multiple scenarios, such as transferring balances, increasing monthly payments, etc. It can show you the best route to pay off your debt, while minimizing the amount of interest you pay.
You can find the software on the net at http:\\www.wintools.com.

Give it a try...

v/r

Michael

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Author: Rogue31 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1959 of 308684
Subject: Re: Consolidation Loan Date: 6/1/1998 10:09 AM
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Threw this together in Excel. Didn't run payments
for three years, but maybe this gives you an idea.

	        LOAN	INT.RATE INT/MO	  INT/YR
LOAN #1	        3900	 8.00	  26.00	  312.00
LOAN #2	        2800	 8.25	  19.25	  231.00
LOAN #3	        5500	 8.25	  37.81	  453.75
LOAN #4	        2400	 8.25	  16.50	  198.00
LOAN #5	        4000	 8.25	  27.50	  330.00
LOAN #6	        5500	 8.0	  36.67	  440.00
LOAN #7	        6200	 8.98	  46.40	  556.76
TOTAL	       30300		 210.13	 2521.51
				
				
CONSOLODATION  30300	 8.25	 208.31	 2499.75


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Author: PSUEngineerFool Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1963 of 308684
Subject: Re: Consolidation Loan Date: 6/1/1998 12:13 PM
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<<I've got seven different loans at various interest rates I'm tackling right now. Here are the rounded balances and the interest rates:

1. $3900@8.0%
2. $2800@8.25%

3. $5500@8.25%
4. $2400@8.25%

5. $4000@8.25%
6. $5500@8.0%

7. $6200@8.98%

I can consolidate all of these loans with an 8.25% interest rate, but I'm not sure if that would help or hurt in the long run. Any advice or software recommendations? I can't seem to crunch the numbers and trust my own projections. I want to pay them off in three years or less. Thanks for any advice.>>

Here is some advice without number crunching. Why not just consolidate some of the loans? Consolidate loans 2, 3, 4, 5, and 7 into the new loan at 8.25%. Keep the two 8% loans separate from the loan consolidation. The only loan you are saving on by consolidation is number 7. If there are loan consolidation fees involved, it probably will not benefit you to consolidate except for simplifying your bill paying to 1 bill and saving postage stamps.

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Author: ChicagoBob Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1977 of 308684
Subject: Re: Consolidation Loan Date: 6/1/1998 3:56 PM
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Hello trillis,

FWIW: I am a firm believer in KISS (Keep It Simple Silly). Without knowing what any of the fees for your loans are or for the new loan would be, my gut reaction would say go for the single big loan. All other factors being equal (fees, total monthly payments, total time for complete payoff, etc.), there is no problem that I know of with using a consolidation loan.

Simplify, Simplify, Simplify.

Good Luck & Fool On!
-ChicagoBob

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Author: TMFRunkle Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2012 of 308684
Subject: Re: Consolidation Loan Date: 6/2/1998 10:12 PM
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<<I can consolidate all of these loans with an 8.25% interest rate, but I'm not sure if that would help or hurt in the long run.>>

I did a weighted average of your interest rates - to do so, multiply each loan by the interest rate, and sum the results. Then, divide by the sum of the money you owe. The result is you are paying 8.32% in interest right now. So, an 8.25% loan would lower the interest you are paying somewhat. Also, having one payment would make life a lot easier.
George

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