Managing your debt is an important part of dealing with your finances. Eliminating a debt as soon as possible helps free up cash, lowers recurring expenses, and contributes to a healthier cash flow overall.
So how exactly can taking up another loan save you money? The answer is quite simple – with a debt consolidation service.
What is Debt Consolidation?
A debt consolidation service is one loan that you take to manage all other loans you currently have.
Servicing multiple loans is a hassle for many reasons. The loans are usually due at different times in a month and paid to different lenders/banks. Most payments are serviced through various methods such as cash deposit or online banking. It can also be quite tedious to keep track of the different interest rates for each loan.
By simplifying your finances and consolidating all your loans with Alliance One Account, your existing loans will be paid off in advance. You pay only one loan at a lower interest rate. It’s not only easier; it saves you plenty of money at the same time.
Here’s an example of how this can work for you.
Let’s say you have a RM60,000 personal loan with an interest rate of 10% per annum (p.a.) with a monthly repayment of RM1,500.
At the same time, you have other credit cards with an average balance of RM40,000, of an interest rate of 18% p.a. and your monthly repayment is around RM2,000.
On top of all that, you have a home loan with a remaining balance of RM350,000 at a rate of 4.67% p.a. for 30 years, and your monthly installments are RM2,000.
This means your total outstanding loans are RM450,000 and your monthly repayments are about RM5,500.
After Consolidation with Alliance One Account:
Consolidate all your loans of RM450,000 with Alliance One Account and stand to enjoy interest rate from as low as 6.88% p.a..
This means, you may pay as little as RM2,630 each month for your loans.
That’s a 48% in savings on your monthly repayments!
With the Alliance One Account, you can manage your loans in any configuration that you’re comfortable with, depending on your income and property value! You can include all your credit cards, personal loans, car loans and even your mortgage into this account and streamline your payments.
This gives you the flexibility to pay less each month, save on total financing cost and/or have more cash in hand because you consolidated all your loans in one place – in the Alliance One Account.
Sounds Great! How Does It Work?
To apply for the Alliance One Account, you need to have an existing home loan. When you consolidate your home loan and other loans with Alliance One Account, you need only to pay ONE loan at a low interest rate.
To find out how much you can save with Alliance One Account, try out the Alliance One Account online loan simulator!
For more information, visit www.alliancebank.com.my.