Once all of your information has been entered, you simply click the green “Calculate your savings” button. Then, you’ll be taken to the results page.
Getting Your Results
The Personal Loan Calculator will provide your summary on an easy-to-interpret page. There, you will be shown a comparison between the “Lending Club snapshot” and your current debt arrangement. This involves the terms that you will be offered for debt consolidation, based on a specific interest rate for the new loan.
Near the bottom of the page is a box that shows a “Months until debt-free” calculation. Here, you’ll need to decide whether you want a three-year loan or a five-year loan. You can also adjust the expected interest rate (APR) using the slide bar to the right. This is where you can determine if a debt consolidation loan will work to your advantage, based on various APR’s.
In this example, we’re looking at a debt consolidation of $25,000, covering five different loans with an average APR of 14.55%, and a combined monthly payment of $835.
Based on a debt consolidation at a rate of 7.96%, we can save more than $3,000 in interest alone over the term of the loan. That cuts the effective interest rate on current debt by more than half.
Meanwhile, the monthly payment drops to $783, which saves us $57 out of pocket each month. Given that we’ve selected a 36 month loan, the debt will actually be paid off two months faster after consolidating.
This is just one example of how you can use the Personal Loan Calculator to help you in deciding if a debt consolidation loan will be to your advantage. You can run as many scenarios as you like – it’s even kind of fun!
If you decide that you want to go ahead with a debt consolidation loan, you can click the green “Check my rate” button at the page. That will move you onto the next step in the process. Check out Lending Club’s Personal Loan Calculator and see how it works for you!
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