Debt Consolidation Calculator
Calculate savings from consolidating your debts. Analyze multiple debts, compare consolidation options, and discover strategies to save money and pay off debt faster.
Debt Consolidation Guide
What is Debt Consolidation?
Debt consolidation combines multiple debts into a single loan with one monthly payment. This can simplify your finances and potentially reduce interest costs.
• Combines multiple payments into one
• May reduce overall interest rate
• Simplifies debt management
• Can improve cash flow
Consolidation Options
Personal Loan
Fixed rate, 2-7 years, 6-36% APR
Balance Transfer Card
0% intro APR, 12-21 months
Home Equity Loan
Lower rates, tax benefits, home at risk
Debt Management Plan
Credit counseling, reduced rates
When to Consolidate
✓ Multiple high-interest debts
✓ Good credit for better rates
✓ Stable income for payments
✓ Discipline to avoid new debt
✗ Poor credit (limited options)
✗ Small debt amounts
✗ Spending problems not addressed
Consolidation works best when combined with a solid budget and spending plan.
Qualification Requirements
Credit Score
580+ minimum, 720+ for best rates
Income
Stable employment, debt-to-income < 40%
Debt Amount
$2,000+ typically required
Documentation
Pay stubs, tax returns, bank statements
Pros and Cons
Pros:
• Simplified payment management
• Potentially lower interest rates
• Fixed repayment schedule
• May improve credit utilization
Cons:
• Origination fees (1-8%)
• May extend repayment period
• Temporary credit score impact
• Risk of accumulating new debt
Success Tips
• Shop multiple lenders for best terms
• Compare APR, not just interest rates
• Calculate total cost including fees
• Avoid closing all credit cards
• Create a budget to prevent new debt
• Set up automatic payments
• Consider debt counseling if needed
• Focus on root causes of debt
Success requires both the right loan terms and disciplined financial habits.
Explore Related Debt Management Tools
Compare different loan options and strategies for managing debt effectively.