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02
AUG
2005

Two steps forward, one step back – Interest rates

It’s easy to over-look the amount in monetary value you are paying in interest to your creditors each month. If you take for example a £15,000 loan at 7.7% – a fairly decent rate for an unsecured loan. In month one you will be paying £96.25 in interest in the first month! Now this does work on a sliding scale, if your contractual payments are £225, in the 2nd month your interest in month two would be £95.42, £94.59 in month three. In five years interest would total £4113.00. Looking at credit cards, If you maintained three credit cards totalling £9,000 at 15.9% interest you are paying £119.25 per month in interest. Now some people may well be aware of this and others maybe not to the same extent, but it certainly does pay to be in the know of how much you are paying and that if you are struggling to maintain payments whilst also having interest applied on your accounts we are able to offer a free no obligation chat to establish what options are open to you to both consolidate your debts and reduce the interest charges you are paying each month so as to bring you into a debt free life that bit quicker.

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