Illustration Guide - Repsource - Manulife Financial

Concept report, Continued
Options chart
Option
The Old Way
Consolidation
The following chart details the debt reduction possibilities of Manulife one:
Explanation
This is the way the client currently pays for debts.
• Payments drop as debts are repaid.
• Monthly Payment = current monthly payment.
• Payment Reduction will always be "N/A".
• All Debts Repaid In is the length of time until all debt is repaid.
• Total interest is the sum of all interest payments on all debts for the
duration of the debts.
• Interest Saved will always be $0.
This shows the effect of consolidating debts and short-term savings and
applying the same payments as in The Old Way to the consolidated debt.
• Balance = Current debts – current savings + transfer costs.
• Payment is exactly the same as under The Old Way, dropping at the same
times but usually ending earlier.
• Monthly Payment will always be the same as The Old Way.
• Payment Reduction will always be $0 as payments are the same.
• All Debts Repaid In is the amount of time it takes the Manulife one
account to pay off (usually less than The Old Way.)
• Total Interest is the sum of all interest payments on the Manulife one
account for the duration of the borrowings.
• Interest Saved is the difference between Total Interest under The Old Way
and Total Interest under Consolidation.
The one Way This shows how Manulife one consolidates debts, increases the effectiveness
of short-term savings and uses normal monthly cash flow to drive down debts
quickly.
• Monthly payment = Income – Expenses
• All Debts Repaid In is the amount of time it takes the Manulife one
account to be repaid based on the Manulife one rate and this monthly
payment calculation.
• Total Interest is the sum of all Manulife one payments while the debt
exists – the initial Manulife one balance.
• Interest Saved = Total Interest for The Old Way – Total Interest for The
One Way.
Manulife one Illustration Guide 20 December, 2000