Debt Consolidation Calculator
Combine multiple debts into one loan to simplify payments and potentially save money
Current Debts
You can increase payments above minimum anytime
Debt #1
Debt #2
Debt #3
Debt Consolidation Loan
Origination fees, closing costs, etc.
Fees added to loan principal
Borrowing Details
Consolidation is More Expensive
Since your consolidation loan's APR is higher than your estimated current debt APR (6.19% vs. 7.20%), it's more expensive to consolidate your debts.
| Metric | Total Debts | Consolidation Loan |
|---|---|---|
| Balance ($) | $17,700 | $17,700 |
| APR (%) | 6.19%* | 7.20% |
| Monthly Payment ($) | $320 | $268.874 |
| Payoff Term | 5 years, 11 months | 7 years, 0 months |
| Total Payable ($) | $15,639.52 | $22,585.438 |
| Total Interest ($) | $-2,060.48 | $4,885.438 |
* If any of your debts require fixed payments, the APR is estimated by weighted average procedure.
Consolidation Benefits
Simplify Payments
One monthly payment instead of multiple bills
Lower Interest
Potentially reduce overall interest charges
Fixed Schedule
Predictable payments with clear payoff date
Credit Score
May improve credit utilization ratio
Warning Signs
Higher APR
Consolidation loan rate exceeds current weighted average
High Fees
Origination fees that offset interest savings
Longer Terms
Extended payoff period increases total interest
Understanding Debt Consolidation
What is Debt Consolidation?
Debt consolidation refers to the process of rolling multiple debts into a larger, single-payment loan. This replaces several small debts with one consolidation loan, simplifying your financial management.
How It Works
- ✓Apply for a consolidation loan covering your total debt
- ✓Use the loan proceeds to pay off existing debts
- ✓Make one monthly payment on the new loan
- ✓Follow a fixed repayment schedule to become debt-free
When Consolidation Makes Sense
Good Candidates
- • Multiple high-interest credit cards
- • Good credit for better rates
- • Steady income for payments
- • Discipline to avoid new debt
Poor Candidates
- • Unstable income
- • Poor spending habits
- • Already low interest rates
- • Small debt amounts
Calculate Total Debt
Add up all balances, rates, and payments
Compare Options
Shop for consolidation loans with better terms
Execute Plan
Pay off debts and stick to new payment schedule