Debt Consolidation Fees Explained
Become Debt Free
Take Back Your Financial Freedom
Example Of Our Fees & Cost Savings
- Amount of Debt
- Prior Interest per Month at 20%
- Prior Monthly Payment
- Prior Time to Pay Off Debt
- NEW Monthly Payment
- Monthly Fee ($75 + GST/HST)
- NEW Time to Pay Off Debt
- *Savings on the Debt Management Plan
Real Life Example & Calculations
If you have $25,000 worth of debt with a 20% compounding interest rate (which most credit cards calculate on), each month your average minimum payment will be $750 as most credit cards calculate minimums at 3% of the balance. Out of this, $416 going towards the interest and only $337 being paid back towards the total of the debt. With this structure the debt would take over 81 years to pay off and cost thousands and thousands of dollars in interest.
With a Debt Management Plan, we negotiate on your behalf to reduce your interest rate to 0% (or as close to 0% as we can!). This lowers your monthly payment to something more affordable so you can pay off the debt faster. For the same $25,000 if we reduce the interest to 0% we can reduce the total payment to $500 per month. This $500 includes our fee of $75 + $3.75 in GST. Therefore $421.25 each month is paid towards the $25,000 debt and since there is no interest, the debt does not increase and will in fact reduce each month. With the debt structured this way it will take only 5 years to pay off the total $25,000 and you will save almost $20,274.00.