Debt Consolidation Calculator
Compare your current debts to a debt consolidation loan using our debt consolidation calculator. See if consolidating multiple high-interest debts into one lower-rate loan could save you money and simplify your payments.
Current Debts
Consolidation Loan Terms
Common terms: 36, 48, 60, or 84 months
Consolidation Analysis
Total Debt Amount
$0
Current Payment
$0
Consolidated
$0
Monthly Difference
$0
Interest Difference
$0
Monthly Payment Comparison
This chart compares your current total monthly debt payments to the proposed consolidated loan payment.
Total Cost Comparison
This chart shows the total amount you'll pay including principal (green) and interest (red).
Understanding Debt Consolidation
Debt consolidation combines multiple debts into a single loan with one monthly payment. Our debt consolidation calculator helps you determine if consolidation makes financial sense by comparing your current debt situation to a consolidated loan option.
Key Benefits
Simplified Payments
One monthly payment instead of juggling multiple due dates, minimum payments, and creditors. Reduces the risk of missed payments and late fees.
Lower Interest Rate
Consolidation loans often have lower rates than credit cards, especially if you have good credit. This can save thousands in interest over the life of the loan.
Fixed Repayment Term
Unlike revolving credit, consolidation loans have a fixed term with a clear payoff date. This provides structure and a definite end to your debt.
Potential Credit Score Improvement
Paying off credit card balances can lower your credit utilization ratio, potentially improving your credit score over time.
Important Considerations
- Origination fees or closing costs may offset some savings
- Longer terms mean lower payments but potentially more interest paid overall
- Secured loans (like home equity) put your assets at risk if you default
- Closing credit card accounts can hurt your credit utilization ratio
- Consolidation doesn't address underlying spending habits
- Some consolidation loans have prepayment penalties
Disclaimer: This debt consolidation calculator is provided for educational and informational purposes only. The calculations are estimates based on the inputs you provide and do not account for origination fees, closing costs, prepayment penalties, or other loan terms. Actual loan offers may vary based on your credit score, income, debt-to-income ratio, and lender requirements. Consolidating debt does not reduce the total amount owed and extending the repayment term may result in paying more interest over time. This tool should not be considered financial advice. Always review actual loan terms carefully and consult with qualified financial advisors or credit counselors before consolidating debt or taking out new loans.
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