You received a bill consolidation loan offer in the mail.
Dear Student,
I’m delighted to inform you that you have been approved for a Homeowner Bill Consolidation Loan of up to $365,100 at our lowest fixed rate of 6.00% (6.184% APR). You can use this money for anything you like; to pay off your high-interest debt, pay for college or expenses, take a dream vacation, or whatever you want. There are no restrictions!
For an example, with the following debt consolidation, a typical homeowner would save $1,224.88 per month!!
Credit Card—Interest 21% with Balance of $12,000 for Monthly Payment of $448.62
Auto Loan—Interest 8% with Balance of $15,000 for Monthly Payment of $359.20
Student Loan—Interest 10% with Balance of $23,000 for Monthly Payment of $488.68
Home Mortgage—Interest 8% with Balance of $170,000 for Monthly Payment of $1247.40
TOTAL CURRENT DEBT—$220,000 for Monthly Payment of $2543.90
New Homeowner’s Bill Consolidation Loan—Interest 6% with Balance of $220,000 for Monthly Payment of $ XXXXXXXXXXfor SAVINGS of $1224.88
First Month’s Savings = $1224.88
First Year’s Savings = $14,698.56
Potential 10-year Savings = $146,985.60