Introducing: The Borrowell Personal Loan Calculator!
March 16, 2018
Debt has become a major issue in Canada. In fact, 2017 figures from Equifax show that consumer debt is now at an all-time high of almost $1.8 trillion – and this includes $90 billion in outstanding credit card debt!
If you’re considering a personal loan to consolidate your debt or pay off your credit cards, determining your monthly payment on the loan is typically the biggest concern. Figuring out how much you’ll save on interest payments with a personal loan compared to borrowing with your credit card is also an important factor.
So, how do you find out if a loan is affordable? Borrowell’s new personal loan calculator is a great tool because it can help you understand your loan decision and how it will affect your finances. A Borrowell loan can help you save thousands on interest payments, so you can be debt-free faster.
How do I use the calculator?
Using the personal loan calculator is simple and easily shows you how much you can save. First things first – select the type of debt you have. Then, enter your current debt balance, your Annual Percentage Rate (APR), and your monthly credit card payment. If you have multiple sources of debt, you can add that by clicking the “add debt” button.
Once you hit the calculate button, the calculator will automatically compare your debt with a Borrowell loan to show you how much you could save in interest payments.1
How much can I save with a Borrowell personal loan?
For example, let’s say you have $10,000 in credit card debt with an APR of 19.99% and your monthly payments are $250. If you continue to make this monthly payment, you could ultimately pay $6,069.25 in interest – and you’ll be paying off that debt for a long time.
Now let’s compare with a Borrowell loan option of $10,000 with an APR of 10.49%. Your monthly payments could be about $324.98 and the total amount of interest you’d pay would be $1699.18.2
As the personal loan calculator shows, you could save $4,910.07 and get out of debt 30 months sooner with a personal loan from Borrowell! If you’re feeling overwhelmed by debt, you can apply for a Borrowell personal loan here.
What are the benefits of a Borrowell personal loan?
Taking out a loan is a big decision and you may have questions. That’s perfectly fine – we’ree here to provide the answers you need!
Benefit #1: Save $$ on interest
Credit card debt is (clearly) expensive. If you get behind on payments, you can end up paying a lot of money in interest and it’s hard to find a way out. Plus, late payments can lead your issuer to increase your interest rate to as much as 29.99%.
Benefit #2: Get out of debt faster
When you’re only making the minimum payments on your credit card balance, you simply can’t know when you’ll be debt free. When you take a personal loan, you’ll be able to set your very own debt-free date to get out of it sooner.
Benefit #3: Don’t worry about the repayment fees
Many banks and lenders will charge you extra if you decide to pay off debt all at once. At Borrowell, we offer low-interest loans with the intention of helping Canadians get out of debt in order to save on interest payments. There are no prepayment penalties and you can pay your loan off all at once if you want to.
Benefit #4: Borrowell is secure
We take your privacy very seriously. We use bank-level encryption to protect your personal data and we don’t share it.
We’re excited to share our new personal loan calculator tool and encourage you to play around with it! If you like what you see, you can instantly check your rate and get a quote on a loan without affecting your credit score, which you’ll get (for free) in the process! Thousands of Canadians have borrowed from Borrowell to get out of debt faster and to improve their financial well-being. We hope the new calculator will help our customers make great financial decisions.³
Check your rate and get a quote instantly, without affecting your credit score here.
1Projected savings are based on the information you have provided about existing obligations and the APR you have selected for a new loan. Actual savings depend on the specific terms of your existing obligations and the APR you qualify for on a Borrowell loan. Your APR will be determined by your ERS 2.0 credit score, loan amount, loan terms, and credit history. 5.6% is the average rate for Borrowell customers who received the best grade on the Borrowell lending platform in 2017.
2Based on credit card APR of 19.99% and credit card debt repayment of $250 per month.
³Please note that final approval of your application for a Borrowell loan is conditional on completion of the steps set out in your application (including identity, income, and bank account verification) as well any further underwriting review deemed necessary. Additional documents may be required. Borrowell retains the right to adjust any loan options presented to you or to decline your application at any time prior to final approval.