Debt Consolidation Calculator
Compare your current debts with a consolidated loan to see potential savings.
Your Current Debts
Current Debt Summary
Consolidated Loan Summary
Savings
Savings Table
| Metric | Current | Consolidated | Savings |
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What is Debt Consolidation?
Debt consolidation is the process of combining multiple debts into a single loan with one monthly payment. This can simplify your finances and potentially lower your interest rate, saving you money over time.
How to Use This Calculator
- Enter each debt you currently have, including the balance, interest rate, and monthly payment.
- Enter the interest rate and term for the consolidation loan you are considering.
- Click Calculate to compare your current situation with the consolidated option.
Frequently Asked Questions
Does debt consolidation hurt my credit score?
Consolidating debt can temporarily lower your score due to a hard inquiry, but consistent on-time payments can improve it over time.
What types of debt can be consolidated?
Credit cards, personal loans, medical bills, and other unsecured debts are commonly consolidated. Mortgages and auto loans usually require separate refinancing.
Is a lower monthly payment always better?
Not always. A lower payment may come with a longer term, which can mean paying more total interest even at a lower rate. Compare total costs carefully.
Should I use a home equity loan to consolidate debt?
Home equity loans often have lower rates, but they use your home as collateral. Consider the risk of losing your home if you cannot make payments.