Debt Consolidation Calculator

See how much you can save by combining multiple debts into one lower-rate loan.

Your Current Debts

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Consolidation Loan

When Does Debt Consolidation Make Sense?

Debt consolidation works best when you can get a significantly lower interest rate than your current debts. This is most effective when consolidating high-interest credit card debt (18-25%) into a personal loan (6-12%).

Consolidation Checklist

  • New rate should be meaningfully lower than your average current rate
  • Fixed payments help you stay on track vs. minimum-payment traps
  • Watch out for origination fees (1-6%) that add to your cost
  • Critical: don't run up the credit cards again after consolidating

Frequently Asked Questions

Short-term, the hard inquiry and new account may cause a small dip. Long-term, consolidation often improves your score by lowering credit utilization and establishing consistent on-time payments. The key is not running up the old accounts again.
Most unsecured debts: credit cards, personal loans, medical bills, payday loans, and some store financing. You generally cannot consolidate secured debts like mortgages or auto loans this way, though refinancing serves a similar purpose for those.
Yes — a 'debt consolidation loan' is simply a personal loan used to pay off other debts. The terms and rates are identical. Some lenders will even pay your creditors directly.

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