1. Inventory every balance
List APRs, promo deadlines, minimums, and payoff penalties so nothing is missed.
Debt Consolidation Calculator
Compare your current debt stack with a consolidation loan to see if switching truly saves money.
Debt consolidation workflow
Move from scattered balances to a single actionable plan.
2. Compare consolidation offers
Feed personal loan, balance transfer, and HELOC quotes into the calculator to view blended cost.
3. Build the payoff timeline
Adjust repayment velocity, snowball vs. avalanche, and extra principal contributions.
4. Export to personal loan & AI tools
Send the schedule to the personal-loan and AI planners to validate rates and create accountability.
How people consolidate debt with this tool
Two examples showing the connection to personal-loan and AI calculators.
Freelancer juggling five credit cards
Wants one predictable payment after a slow season.
- •Profile: $62k variable income, $28k across 5 cards with rates up to 27% APR.
- •Plan: Modeled a personal loan vs. balance-transfer ladder, then exported the winner to the personal loan calculator to confirm fees.
- •Result: Locked a 48-month loan at 11% APR and used the AI planner to design weekly spending limits.
Family consolidating medical bills
Needs to merge $45k of medical debt without risking mortgage approval.
- •Profile: Two earners, 690 credit scores, FHA refinance planned within 18 months.
- •Plan: Built an avalanche payoff, added emergency savings contributions, and synced the plan to the AI calculator for habit coaching.
- •Result: Identified a $1,350 monthly payment that clears debt in 30 months while preserving the refinance timeline.
Stay disciplined after consolidating
Share the payoff plan with personal-loan and AI tools so spending, savings, and rate shopping stay aligned.
Debt Consolidation Guide
What Is Debt Consolidation?
Debt consolidation rolls multiple balances into a single loan so you make just one payment. The right offer can lower interest and simplify budgeting.
• Combine several payments into one
• Potentially lower the overall interest rate
• Streamline debt management
• Improve cash flow predictability
Common Options
Personal loan
Fixed rate, 2-7 year term, ~6-36% APR
Balance transfer card
0% intro APR for 12-21 months
Home equity loan/HELOC
Lower rate, tax perks, home at risk
Debt management plan
Credit counseling negotiates lower rates
When Consolidation Works
✓ Multiple high-interest debts
✓ Good credit to qualify for better rates
✓ Stable income to cover the payment
✓ Discipline to avoid new debt
✗ Poor credit (limited offers)
✗ Very small balances
✗ Spending habits not fixed
Pair consolidation with a solid budget and spending plan.
Qualification Checklist
Credit score
580+ minimum, 720+ for best rates
Income
Steady job, DTI under 40%
Debt amount
Usually $2,000+ total
Documentation
Pay stubs, tax returns, bank statements
Pros & Cons
Pros:
• Simplified repayment
• Possible lower rate
• Fixed payoff schedule
• May improve utilization
Cons:
• Origination fee (1-8%)
• May extend the term
• Temporary credit dip
• Risk of new balances
Success Tips
• Shop at least 3 lenders
• Compare APR, not just rate
• Calculate total cost incl. fees
• Keep a few cards open for credit length
• Build a strict budget
• Automate payments
• Seek counseling if overwhelmed
• Address the root spending issue
The right loan plus disciplined habits delivers real savings.
Explore Related Debt Tools
Compare loan options and paydown strategies to stay on track.