Debt Consolidation Calculator
Analyze whether consolidating your debts is beneficial for you.
Calculate Consolidation
Debt Comparison
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Understanding Debt Consolidation
Debt consolidation combines multiple debts into a single loan, potentially lowering your interest rate and simplifying payments. However, it's not always the best solution for everyone.
Lower interest rates and monthly payments
Simplified finances with one payment
Fixed payment schedule and payoff date
Potential improvement to credit utilization ratio
Potential Risks:
Longer repayment terms may increase total interest
Origination fees and closing costs
Temptation to accumulate new debt
Risk of losing collateral if using secured loans
Debt Management Strategies
Debt Snowball
Pay minimums on all debts, then attack the smallest balance first for psychological wins
Debt Avalanche
Pay minimums on all debts, then attack the highest interest rate first for maximum savings
Consolidation Loan
Combine all debts into one loan with potentially lower rate and single payment
Balance Transfer
Move high-interest credit card debt to a card with lower or 0% promotional rate