In this scenario, if you continued to make payments on your existing debt, you would need to pay $2,859 a month for 3 years to bring the balance down to zero. Also, you would pay $27,938 in interest during that time.
A personal debt consolidation loan for the same principal amount ($75,000) and the same repayment term (3 years), with a fixed interest rate of 17%, can help you save $6,382 on interest over the course of the loan.
If your immediate focus is on the affordability of your monthly payments, you may choose to extend your repayment period. In the same example, consolidating your debt into a 10-year loan will decrease your monthly payment from $2,859 to $1,314.
That’s 54% more affordable than your previous financing.
Note: Extending your repayment term will result in you owing a higher amount of total interest over the life of the loan.
What is the benefit of consolidating your personal debt with an extended-term loan?
Lower monthly payments are primary benefits of an extended-term personal debt consolidation loan. These affordable payments make it so that you can keep more cash on hand.
Additionally, personal debt consolidation streamlines your finances. If your current debt consists of multiple credit cards, loans, and other lines of credit, debt consolidation gives you one loan with a fixed interest rate, due date, and low monthly payment—so that you can spend less time managing debt and more time focusing on other priorities.
What are the advantages of consolidating your personal debt with BHG Financial?
With so many options available, we understand how challenging it can be to choose the right lender for your financing needs.
BHG Financial is widely regarded as a top choice for our large loan amounts up to $200,0001 and long repayment terms up to 10 years1,2, providing our customers with low monthly payments. Beyond large amounts and flexible terms, you can take advantage of a streamlined lending experience with minimal paperwork and no personal collateral required.
You can get started online today by viewing your monthly payment estimate here. Checking won’t impact your credit score.3
1 Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile. Finance amount may vary depending on the applicant's state of residence.
2 Personal Loan Repayment Example: A $59,755 personal loan with a 7-year term and an APR of 17.2% would require 84 monthly payments of $1,229.
3 There is no impact on your credit for applying. For personal loans, a complete credit history, which will appear as an inquiry on your credit report, will be performed upon acceptance and funding of the loan and may impact your credit.
No application fees, commitment, or impact on personal credit to estimate your payment.
Consumer loans funded by one or more participating lenders. Equal Housing Lenders.
For California Residents: BHG Financial loans made or arranged pursuant to a California Financing Law license - Number 603G493.
* “Credit Card and Unsecured Personal Loan Balances Remain at or Near-Record Levels as Consumers Navigate Challenging Economic Climate.” TransUnion. https://newsroom.transunion.com/q1-2023-ciir. Accessed September 13, 2023.
** Amar, Moty; Ariely, Dan; Ayal, Shahar; Cryder, Cynthia; Rick, Scott. “Winning the Battle But Losing the War: The Psychology of Debt Management.” Journal of Marketing Research. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1760528. Accessed September 13, 2023.