Are you struggling to pay your monthly payments? Do you need to save a little from your credit card and auto loan repayments? Why not consider consolidating your debts to lower your monthly payments and save some hard-earned cash?
Chase Bank does not offer debt consolidation loans directly to its customers; however, personal loans and home equity lines of credit offered by the bank can be used to consolidate your debts.
Making multiple monthly payments on your loans is not easy and you may face defaults and your credit rating may be affected by it.
By availing a home equity line of credit from Chase, you can combine all your existing installment loans, including small business loans into one line of credit having lower interest rate and monthly payments.
How to consolidate your credit card debt with some calculations?
Visit the website of JPMorgan Chase to use the debt consolidation calculator and HELOC calculator to know if such an option is viable for you.
Debt Consolidation Calculator
Debt consolidation loans calculator is a convenient tool that can help you find out how much you will be able to save by consolidating all your multiple debts into a single home equity line of credit.
To make the calculation, you will have to enter information regarding your existing debts, monthly payments, interest rates and current balances.
The bank also offers a home equity line of credit calculator that shows how much you will be able to borrow against the equity value of your home.
To find how much you can save through debt consolidation, enter details of your existing loans, amount owed in different loan, monthly payments and the months left in the loan terms.
Now that you completed the first step, you should now take a look at the features of Chase home equity loan and begin the application process.
Some Pros and Cons of debt consolidation
Some financial experts say that credit card debt consolidation is a myth, while some say that it is an effective way to pay off debts timely. That being said, you should make yourself clear with the different stories surrounding debt consolidation.
The Lighter Side
Whether you need a faster way to pay off high-interest debts or you want to lower monthly payments, debt consolidation can be a viable option.
Loan consolidation will simplify your repayment process as you are transferring your multiple debts into a new loan. Mostly likely, you may even get lower interest rates or flexible terms on your new loan, which will allow you to reduce your monthly payments.
The Darker Side
While there are certain advantages of debt consolidation, it may be not the right option for everyone.
You never know whether debt consolidation will work in your favor. For a debt consolidation program to work, the majority of your loan balances should be in unsecured debts, such as personal loans, credit and charge cards and collection accounts.
Loan consolidation may not be effective if the bulk of your liabilities include other expenses like tax debt, child support arranger, or old parking tickets.
Moreover, your loan consolidation program may take years and you should be able to pay for it. You also need to have enough cash for your essential expenses and some savings as well.
Nevertheless, consolidating all your high-interest loans into one debt consolidation loan having great rate could definitely save you on the amount of interest that you pay on your multiple debts each month.
Moreover, it is important that you maintain your credit score by making your payments in time.
The best way is to find a reliable counselor who could provide you with a detailed assessment of your entire financial situation. A knowledgeable counselor will be able to guide you whether loan consolidation is a better way or you have other options available.