Your Current Debts
Add Your Debts
Consolidation Loan Options
How It Works
Add Your Debts
Enter all your current debts including balances and interest rates.
Compare Options
See how a consolidation loan compares to your current repayment plan.
Calculate Savings
Discover how much interest you could save with debt consolidation.
Payoff Timeline
See how quickly you could become debt-free with consolidation.
Debt Tips
Pay More Than Minimum
Even small extra payments can significantly reduce your payoff time.
Consider Balance Transfers
0% APR balance transfer cards can save money if you can pay off during the introductory period.
Check Your Credit Score
Better credit scores typically qualify for lower consolidation loan rates.
Avoid New Debt
Focus on paying off existing debt before taking on new financial obligations.
How to Use the Debt Consolidation Calculator
Our Debt Consolidation Calculator helps you understand whether consolidating your debts could save you money and help you pay off debt faster. Here's how to make the most of this tool:
Step 1: Enter Your Current Debts
Start by adding all your current debts using the "Add Debt" button. For each debt, include:
- Debt Type: Select the category that best describes your debt
- Balance: The current amount you owe
- Interest Rate: The annual percentage rate (APR) you're paying
The calculator will automatically total your debts and calculate your current monthly payment based on standard repayment terms.
Step 2: Input Your Consolidation Loan Details
Next, enter the details of the consolidation loan you're considering:
- Loan Amount: Typically the total of your current debts
- Interest Rate: The APR offered for the consolidation loan
- Loan Term: How long you'll have to repay the loan (in months)
You can also choose to include a 3% loan origination fee, which is common with many consolidation loans.
Step 3: Analyze Your Results
After clicking "Calculate Savings," you'll see a detailed comparison showing:
- How long it will take to pay off your debts with and without consolidation
- Total interest paid under both scenarios
- Your potential monthly savings
- A visual chart comparing both repayment methods
Understanding the Results
Debt consolidation makes the most sense when:
- The consolidation loan has a significantly lower interest rate than your current debts
- You can pay off the consolidation loan in a reasonable timeframe
- The monthly payment is manageable for your budget
- You're committed to not accumulating new debt during repayment
Important Considerations
While debt consolidation can be an effective strategy, it's not right for everyone. Be sure to consider any fees associated with consolidation loans, and remember that extending your repayment term could mean paying more interest over time, even with a lower rate.
Next Steps
If the calculator shows that consolidation could save you money:
- Shop around for the best consolidation loan rates from banks, credit unions, and online lenders
- Check your credit score - better scores typically qualify for better rates
- Consider speaking with a financial advisor about your specific situation
- Create a budget to ensure you can comfortably make the new monthly payment
Remember, the most important factor in becoming debt-free is consistency. Whether you choose consolidation or another method, sticking to your repayment plan is key to financial freedom.