CanadaBanks.net Offers a New Calculator for Improved Borrowing Capacity

A new calculator by CanadaBanks.net helps visitors to compare multiple loan options and make wise borrowing choices.

(PRWEB) June 06, 2014

CanadaBanks.net launches a new loan calculator (http://www.canadabanks.net/Loan-Calculator.aspx) to help visitors make prudent borrowing decisions that may otherwise affect their quality of life for years and even decades.

Developed by the web and content development team at CanadaBanks.net, the loan calculator took 3 weeks of intensive work and was first tested internally. Many borrowers face uncertain future in times of economic recession, and financial mistakes can be costly. The new tool helps visitors to calculate their monthly payments and avoid abusive interest rates and risky loan terms.

“Our loan calculator helps Canadian consumers to make informed decisions, whether buying a car or going on vacation. Given that interest rate increases are expected, sound financial decisions make life more affordable,” said John Williams, marketing consultant at CanadaBanks.net.

The calculator asks visitors to enter the amortization period, interest rate, and loan amount in order to calculate their monthly payments. The calculator shows three outputs – the total to be repaid, the total interest cost, and the monthly payment. The goal is to make complex calculations easier. Besides, loan agreements are often complex documents that are packed with terms such as cross default, material adverse effect, quit claim deed, close of escrow, substitute basis, and others. With all this terminology, borrowers get confused and often make poor financial choices. Some financial establishments use aggressive marketing practices, and customers feel pushed into accepting unfavorable and even abusive terms. Not only are borrowers confused over complex agreements, but they often find it difficult to compare terms to find low-priced solutions. The new calculator helps borrowers to calculate the interest charges and payments and compare different offers, making comparison shopping an easy task. The tool is easy to use by different types of borrowers – convenience shoppers, relationship customers, repeat borrowers, and others. Knowing the cost of borrowing, visitors can focus on other important details such as penalties, early prepayment charges, closing costs, and others.

About CanadaBanks.net: CanadaBanks.net is an informational resource, focused on the Canadian banking industry.

For the original version on PRWeb visit: http://www.prweb.com/releases/CanadaBanks_net/Loan_Calculator/prweb11917730.htm

Requirements and Benefits of Debt Consolidation Loans and Balance Transfers

Debt consolidation offers many benefits to debt-ridden borrowers, including tax deductible interest and affordable monthly payments. This is a way to lower the interest rate and improve your credit score provided that you make timely payments.

Benefits for Borrowers

percentOne of the benefits for borrowers is that they are offered a single loan to pay off multiple debts. Borrowers make one payment instead of having to worry about multiple deadlines and monthly payments. One option is to consolidate high interest credit cards to avoid interest charges. Many issuers advertise promotional offers and a low or zero rate on balance transfers. Besides getting rid of debt faster, consolidation is a way to stop penalties, late fees, and collection calls. In general, this is a solution for borrowers with multiple loans and credit cards who are behind on their payments. Before you choose a method, ask for any government charges and lender fees, including exit fees, loan application fees, taxes, duties, and others. Taxes and fees may apply, depending on the type of loan and the lender.

Requirements and Criteria

Financial institutions look at factors such as the applicant’s overall stability, employment history and earnings, payment history, and whether collateral is offered. One option is to apply for a home equity loan and use your equity as collateral. Your payment history is also an important factor, and missed or late payments are a red signal for financial institutions. A history of late payments, delinquencies, foreclosures, and bankruptcies could disqualify you. Banks want to make sure that applicants are able to meet their monthly payment. Your earnings and other sources of income are another factor that plays a role. List all sources of income, including additional sources such as alimony, child support, public assistance benefits, life insurance proceeds, and others.

How to Apply

Before you apply, make a list of your debts, including auto, student, and personal loans and credit cards. Look at your monthly payments, interest charges, prepayment penalties, penalty interest, etc. This will help you to choose between a balance transfer credit card and a debt consolidation loan. Then you can approach different lenders or use the services of a professional. Another option is to apply for a credit line and pay your high rate balances and loans first. Try to find a lender that offers loans with no prepayment penalties so that you pay off your debts faster.

Alternatives to Consolidation

If you do not qualify for a debt consolidation loan, consider alternatives such as credit counseling, negotiating with creditors, consumer proposal, formal proposal to creditors, and self money management. Bankruptcy is one option if you are knee-deep in debt, but it depends on the types of loans you have. Negotiating with creditors, for example, is an arrangement whereby financial institutions agree to receive a portion of the outstanding balance.

You may also be interested in:

http://www.canadabanks.net/default.aspx?article=Consolidate+Your+Debt

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