Debt consolidation loans allow businesses to transfer the account balances from credit cards, lines of credit or installment loans into a single loan and to make a single monthly payment. For debt consolidation loans to be beneficial, the repayment period for paying off the consolidation loan should be shorter than what it would be for your existing debts without the loan. Secondly, the interest that you pay over the repayment period should be less than what you would pay with your current repayment terms. In some cases, a debt consolidation loan may look attractive because it has a significantly lower monthly payment than what you are paying today, but it is likely the case that the lower payment is due to extending the repayment of the loan over a much longer repayment period.
Business Debt Consolidation
Business Debt Consolidation
Existing Debt
Total Debt
$ 15,000
Monthly Payment
$ 500
Months to Payoff
47
Consolidation Loan
Total Debt
$ 15,000
Monthly Payment
$ 310
Months to Payoff
60
Using the calculated payment of the consolidation loan will result in a payoff period of 13 more month(s) than the estimated payoff period for your current debts. Over the repayment term, you will pay $1,917 more in total interest with the consolidation loan.
The accuracy of this calculator is not guaranteed by First Citizens Bank [or its affiliates] and is intended for informational purposes only. The calculator displayed does not constitute the advice of, or reflect actual products, services, rates and/or terms available from First Citizens Bank [or its affiliates] and nothing contained in the calculator shall constitute an offer or solicitation of a product or service by First Citizens Bank [or its affiliates].