Debt Consolidation Calculator · Practical guide
Debt Consolidation vs Minimum Payments
Minimum payments keep you in debt for years; a fixed-rate consolidation loan sets a finish line — compare both paths.
At a glance
The Short Answer
Minimum payments are designed to keep a balance alive for decades; consolidation trades that treadmill for a fixed term. On $8,000 at 24% APR, even a steady $250 monthly payment — well above a typical minimum — takes 52 months and costs $4,899 in interest. A 3-year consolidation loan at 12% costs $1,566 in interest, saving $3,333.
Interactive tool
Debt Consolidation Calculator
Enter your own values, then compare the result with the examples below.
Your Current Debts
Current Debt Summary
Consolidated Loan Summary
Savings
Savings Table
| Metric | Current | Consolidated | Savings |
|---|
Why Minimums Barely Move the Balance
Card minimums are usually 1% to 3% of the balance plus that month's interest. At 24% APR, interest alone on $8,000 is $160 in the first month. A minimum near 2% of balance barely covers it, so the principal shrinks by only a few dollars — and as the balance falls, so does the minimum, stretching repayment toward 20-plus years.
Side-by-Side Comparison
| Path | Monthly Payment | Payoff Time | Total Interest |
|---|---|---|---|
| Keep card, pay $250/mo | $250.00 | 52 months | $4,899 |
| Consolidate at 12%, 3 yrs | $265.71 | 36 months | $1,566 |
Note the trade: the consolidation payment is slightly higher, but the debt is gone 16 months sooner and costs $3,333 less. True minimum payments would make the card path look far worse.
How to Compare Your Own Cards
- Enter each card with its balance, APR, and the payment you realistically make — not just the minimum.
- Enter the consolidation loan's quoted rate and term.
- Compare the payoff time and total interest lines, not just the monthly payment.
Frequently Asked Questions
Why do minimum payments take so long to clear a balance?
Because the minimum is mostly interest. At 24% APR, interest on $8,000 is $160 a month, so a small minimum reduces principal by only a few dollars and the balance lingers for decades.
Is a fixed payment the same as a minimum payment?
No. A true minimum shrinks as your balance falls, which stretches repayment further. The calculator models the fixed monthly payment you enter, which pays off faster than real minimums would.
What if the consolidation payment is higher than my current payments?
That often still wins — a higher payment at a much lower rate usually means a shorter payoff and far less total interest. Compare the total interest line to be sure.
Can I consolidate just one credit card?
Yes. A single card can be refinanced with a personal loan or a 0% balance-transfer offer. Enter just that one card above to see the difference.