Debt Consolidation: Example of credit redemption for a single monthly payment

Maxine and Claire are married and have 2 children. Aged 41 and 37, they have both been on permanent contracts for several years and together have a comfortable income of $ 6,372. See for details

Tenants of housing, they have taken out 1 mortgage for the acquisition of a property that they occasionally rent.

Maxine and Claire want above all to simplify their budget management: pay only one creditor for the reimbursement of a single monthly payment.

Needs study and analysis by Capital Lender

Needs study and analysis by Capital Lender

Their house is not rented year-round but seasonally, especially during school holidays. She therefore does not provide regular income to the family.

Credits not included in the redemption of credits

All the credits that Maxine and Claire are currently reimbursing will not be taken up in the context of the restructuring of their outstanding amounts.

  • The Across Lender advisor notes recurring withdrawals from their accounts, one of 550.06 USD; the other of 174.04 USD.
    These 2 amounts correspond to LOA (Rental with Purchase Option) for their 2 vehicles. Maxine and Claire do not wish to include them in the consolidation of their credits;
  • The mortgage includes a monthly loan of 513.51 USD;
  • Also, a small revolving credit amputates them each month from 73.92 USD;
  • The rent for their accommodation, the one they rent for accommodation, is 1,035.97 USD per month.

The total amount of credits not included in the global repurchase reaches 2,347.50 USD.

Credits included in the redemption of credits

Credits included in the redemption of credits

Among the credits to be grouped together are:

  • 1 works credit to renovate the accommodation they rent;
  • 2 credits issued for the purchase of consumer goods;
  • 1 consumer credit to acquire a jet ski;
  • 1 revolving credit;
  • 1 bank overdraft.

The reimbursement of all these outstandings costs them 1,167.68 USD each month.

Calculation of the couple’s debt

In total, the sum of the monthly payments that Maxine and Claire reimburse each month is 3,515.18 USD. Relative to their income, we record a debt of more than 55%.
Despite good income, we understand that the situation can become uncomfortable, especially when you have 2 dependent children, remember.

Details of the situation before and after the repurchase of loans

Details of the situation before and after the repurchase of loans

The choice was made not to group all the credits. There are several reasons for this:

  • • Either a desire on the part of customers, this is the case for example for LOA;
  • • Or on the advice of the Across Lender advisor because including them would not be interesting for them (rate of subscribed credit already low, expiry soon over, etc.)

Also, only the credits mentioned above in the “credits included in the redemption” section and representing a total monthly payment of 1,167.68 USD are included, for a capital remaining due of 50,435.13 USD.