Debt Consolidation Calculator
Calculate savings from consolidating multiple debts into one payment with lower interest rates.
Current Debts
Enter information about your existing debts
Consolidation Loan Calculator
Calculate your new consolidated loan payment
Current Debt Summary
Overview of your existing debts
Total Debt
$8,000.00
Total Min Payments
$240.00
Avg Interest Rate
20.49%
Number of Debts
2
Debt Consolidation Options
Different ways to consolidate your debts
Personal Loan
- • Fixed interest rate and payment
- • Typically 3-7 year terms
- • No collateral required
- • Lower rates than credit cards
- • Rates: 6-36% based on credit
Home Equity Loan/HELOC
- • Very low interest rates
- • Interest may be tax deductible
- • Requires home as collateral
- • Risk of losing home if can't pay
- • Rates: 4-8% typically
Balance Transfer Card
- • 0% intro APR for 12-21 months
- • Transfer fee 3-5% of balance
- • Must pay off during intro period
- • Requires good credit approval
- • Regular APR: 16-25% after intro
Debt Management Plan
- • Work with credit counseling agency
- • Lower interest rates negotiated
- • Single monthly payment
- • May affect credit temporarily
- • Fees: $25-50/month typically
How to Use the Debt Consolidation Calculator
Step 1: List All Your Debts
Enter each debt separately including credit cards, personal loans, and other debts. Include the current balance, interest rate, and minimum monthly payment for each.
Step 2: Research Consolidation Options
Shop around for personal loans, balance transfer cards, or home equity loans. Compare interest rates, terms, and fees from multiple lenders.
Step 3: Compare Total Costs
Don't just look at monthly payments - compare total interest costs over the life of the loan. Factor in any fees, closing costs, or balance transfer charges.
Important Considerations
- • Address the root cause of debt to avoid accumulating more
- • Don't use freed-up credit cards after consolidation
- • Consider credit counseling if you're struggling with payments
- • Be wary of consolidation offers that seem too good to be true
Frequently Asked Questions
Will debt consolidation hurt my credit score?
Initially, there may be a small temporary dip from the credit inquiry. However, if you make payments on time and reduce your credit utilization ratio, your score should improve over time.
Should I close my credit cards after consolidating?
Generally no. Keep them open to maintain your credit history and available credit, but avoid using them. Closing cards can actually hurt your credit score by reducing your available credit.
What if I can't qualify for a low-rate consolidation loan?
Consider a secured loan using collateral, ask a creditworthy cosigner, or work with a credit counseling agency. You might also focus on paying off highest-rate debts first (debt avalanche method).
How long does debt consolidation take to pay off debt?
It depends on the loan term you choose and payment amount. Shorter terms mean higher payments but less total interest. Most consolidation loans are 3-7 years, but you can pay extra to finish early.