OneOnOne Consolidation Module

Evaluation Procedure

We suggest you print this procedure and mark off each step as you complete it.
It has been assumed that you are already a OneOnOne user, or have at least completed the evaluation procedure for OneOnOne.

Is the module installed ?

When any of the optional modules is installed the Mode command will appear on the main menu bar. Select Mode and if you see the option Consolidation, then you have the module installed.

Consolidation is the process whereby a number of financial commitments are merged in to the one loan product. The Consolidation feature enables the comparison of this re-finance strategy with the client's current financial situation ie. Consolidate versus Do Nothing.

The user needs to set up each of the client's current loans (up to four), and the alternative, the Consolidation Loan.

Evaluation:

You can get a very quick appreciation of the capabilities of the Consolidation Module by viewing the example file provided and following the instructions below :-

1) Use File | Open/New
2) select Examples\Consolidation\JohnSmith_Consolidate.1v1, this is an example file containing a comparison between

John Smith's current loans, a home loan, a car loan, and a credit card balance.
and
The Consolidation loan, a single loan covering all of John's financial commitments

3) On opening the file you will see a screen with 5 loans. Loans 1-3 are set up, loan 4 is blank in this particular case. You will also see the consolidation loan. Note: If you can't see this then check the file name at the top left of the screen. If correct you have the wrong mode selected. From the main menu select Mode | Consolidation.

Pushing the buttons next to each loan description will bring on screen the Loan Calculator. The loans can be set up and / or modified as per the instructions in the OneOnOne Evaluation Procedure.

4) Have a look at each of the loans 1 to 3, noting the amounts borrowed and the regular payments in place. Then take a look at the Consolidation loan. You will see that the loan amount is the sum of loans 1 to 3. Also the events list includes all the payment events from every loan 1-3.

5) Thus the default case is that the client continues with the cash flow they currently have in place, with each transaction directed to the Consolidation Loan Account. The Transfer button is used to transfer the Borrowing amounts and the transaction events from the other 4 loans.

After a transfer you can modify the events if you want to suggest an alternative cash flow which benefits your client.

Back at the main screen, Press the compare button. Notice the comparison is between :-

The sum of loans 1 to 4 (reflecting the current situation).
and
The Consolidation of loan amounts into the Consolidation Loan.

Now let's look at setting up your own Consolidation Comparison.

6) Use File | Open/New - then type in a file name - say playtime.1v1

7) Make sure you have Consolidation mode selected (Mode | Consolidation on the main menu bar).

8) Set up loans 1 and 2 to loans typical of one of your clients

9) Select the consolidation loan and select setup - only an interest rate and compounding period is required to be set. If you don't know the compounding period leave it at monthly.

10) Note that as with the other loans you can rename the Consolidation Loan. You may wish to include the lenders name or the product name.

11) Back at the main screen, select Compare.

Thank you for your interest in the OneOnOne Consolidation module. If you have any queries please call 03 9482 2296.