Debt Consolidation Calculator
See if debt consolidation can save you money. Compare your current debt payments to a single consolidation loan with a potentially lower interest rate.
Your Current Debts
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Consolidation Comparison
Detailed Comparison
Consolidation Recommendation
Enter your debt information to see if consolidation makes sense for you.
Pros of Debt Consolidation
- Single monthly payment instead of multiple
- Potentially lower interest rate
- Fixed payoff date
- May improve credit score over time
- Simpler budgeting
Cons of Debt Consolidation
- May pay more interest if term is extended
- Upfront fees may apply
- Requires good credit for best rates
- Doesn't address underlying spending habits
- Risk of running up new debt on freed cards
Important Considerations
Debt consolidation works best when you have high-interest debt and can qualify for a significantly lower rate. It's not a solution if you'll continue accumulating new debt. Consider closing or cutting up credit cards after consolidation to avoid temptation.
Frequently Asked Questions
Initially, applying for a new loan may cause a small temporary dip. However, if you make payments on time and reduce your credit utilization, consolidation can improve your credit score over time.
Be cautious of debt settlement companies that charge high fees. Consider working directly with a bank, credit union, or reputable online lender. Non-profit credit counseling agencies can also help.
Balance transfers with 0% intro APR can be great for smaller amounts you can pay off quickly. Personal loans offer fixed rates and terms, making them better for larger amounts or longer payoff periods.