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Debt Consolidation Calculator

See how much you could save by combining your debts into one lower-rate loan — and whether consolidation makes financial sense for your situation.

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Your Current Debts
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Debt 2
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Consolidation Loan Terms
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Consolidation Comparison

Enter your debts and a consolidation rate to see your savings.

How Debt Consolidation Works

Debt consolidation means taking out a single new loan to pay off multiple existing debts. If the new loan has a lower interest rate than your current debts, you pay less in total interest and simplify your finances to one monthly payment. The savings can be substantial when consolidating high-rate credit card debt into a lower-rate personal loan.

When consolidation makes the most sense

Consolidation is most beneficial when your new rate is at least 3–5 percentage points lower than your current weighted average rate, and when you can commit to not adding new debt to the cards you pay off. Consolidating without changing spending habits often leads to more total debt.

What to Watch Out For

Some consolidation loans charge origination fees of 1–8% of the loan amount. Factor this into your savings calculation. Also be aware that extending your repayment term (e.g., from 2 years to 5 years) can lower your monthly payment but increase total interest paid even at a lower rate.

Frequently Asked Questions

Does debt consolidation hurt your credit score?
A consolidation loan application triggers a hard inquiry, which may temporarily lower your score by a few points. However, paying off revolving credit card balances reduces your credit utilization, which typically improves your score over time.
What credit score do I need to consolidate debt?
Most lenders offering competitive consolidation rates require a credit score of 640 or higher. The best rates (under 10%) typically require a score of 720+. Some lenders work with scores as low as 580, but rates will be higher.
Is a balance transfer better than a consolidation loan?
A 0% APR balance transfer card can be better if you can pay off the balance within the intro period (typically 12–21 months) and your total balance is under $15,000–$20,000. For larger balances or longer payoff timelines, a fixed-rate consolidation loan is usually more predictable and cost-effective.

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