Debt Consolidation Calculator
Compare existing debts with consolidation loans to find the best financial option
The Debt Consolidation Calculator can determine whether it is financially rewarding to consolidate debts by comparing the APR (Annual Percentage Rate) of the combined debts with that of the consolidation loan. APR is the fee-adjusted financial cost of a loan, providing a more accurate basis for loan comparisons. The calculated results will also display comparisons such as the monthly payment, payoff length, and total interest.
Debt Consolidation Calculator
| Debt name | Remaining balance | Monthly or min. payment | Interest rate | Actions |
|---|---|---|---|---|
% | ||||
% | ||||
% |
Understanding Debt Consolidation
Debt consolidation involves combining multiple debts into a single loan, typically with a lower interest rate. This can simplify your payments and potentially save you money on interest charges.
Key factors to consider:
- • APR Comparison: The consolidation loan's APR should be lower than your current weighted average APR
- • Loan Fees: Consider origination fees, closing costs, and other charges
- • Payment Terms: Longer terms may reduce monthly payments but increase total interest
- • Credit Impact: Consolidation may affect your credit score initially
Benefits: Lower monthly payments, simplified debt management, potential interest savings, and improved credit utilization.