Debt Consolidation Calculator

Compare debt consolidation options. See how much you can save by combining multiple debts into one lower-rate loan.

Consolidation Saves You

Interest Savings

$4,022

You save this much!

New Payment

$254

4 year term

Total Debt$10,000
Current APR (avg)22.9%
New APR10%
Time Difference15 months faster

Your Current Debts

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%
$
$
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$
$
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$

Consolidation Loan Terms

%
320
17

Consolidation Recommended

Consolidating at 10% will save you $4,022 in interest and you'll be debt-free 15 months faster. Your payment decreases by $46/month.

Total Cost Comparison

Detailed Comparison

Current DebtsConsolidatedDifference
Total Balance$10,000$10,000-
APR22.9%10%-12.9%
Monthly Payment$300$254-$46
Time to Payoff5y 3m4y 0m-15 months
Total Interest$6,196$2,174-$4,022
Total Cost$16,196$12,174-$4,022

Consolidation Saves You

Interest Savings

$4,022

You save this much!

New Payment

$254

4 year term

Total Debt$10,000
Current APR (avg)22.9%
New APR10%
Time Difference15 months faster

Quick Answer

Debt consolidation combines multiple debts into one loan, potentially at a lower rate. Use our calculator to compare total interest and payoff time. Consolidation makes sense when the new rate is lower and you won't accumulate new debt.

Key Facts

  • Consolidation combines multiple debts into one payment
  • Personal loan consolidation rates: 6-36% depending on credit
  • Balance transfer cards offer 0% APR intro periods (12-21 months)
  • Home equity loans offer low rates but risk your home
  • Consolidation doesn't reduce debt - it restructures it
  • Watch for origination fees and balance transfer fees

Frequently Asked Questions

Debt consolidation combines multiple debts into a single loan, ideally at a lower interest rate. Benefits include one monthly payment, potentially lower rates, and fixed payoff timeline. Options include personal loans, balance transfer cards, home equity loans, and debt management programs.
Consolidate when: you qualify for a lower rate than current weighted average, you can pay off within 3-5 years, you won't add new debt, and fees don't outweigh savings. Don't consolidate if underlying spending issues aren't addressed or if it extends repayment significantly.
Short-term: hard inquiry and new account may lower score 5-10 points. Long-term: can improve score by lowering credit utilization and establishing positive payment history. Closing old accounts after consolidation may hurt length of credit history.
Personal loans (5-12% for good credit), 0% balance transfer cards (3-5% fee, 12-21 months), home equity loans (lower rates, tax deductible), 401k loans (risk retirement savings), and nonprofit debt management plans. Each has different requirements and tradeoffs.
Compare total cost: (new payment × months) + fees vs. (current payments × months to payoff). Factor in: origination fees (1-8%), balance transfer fees (3-5%), and prepayment penalties on existing debt. Savings should exceed fees for consolidation to make sense.