Debt consolidating personal loan
They also probably haven’t saved for all of the “unexpected events,” which will eventually become debt too.
In other words, the good money habits for staying out of debt and building wealth aren’t there—their behavior hasn’t changed—so it’s extremely likely they will go right back into debt.
This means you paid ,688 more for the “lower payment.” Not such a good deal after all.
Let’s say you have ,000 in unsecured debt, including a two-year loan for ,000 at 12%, and a four-year loan for ,000 at 10%.