Debt Consolidation Calculator

What Is Debt Consolidation?

Debt consolidation is the process of taking out a single new loan to pay off multiple existing debts. Instead of managing several payments to different lenders each month, you'll have just one monthly payment to a single lender. This can simplify your finances and, in many cases, save you money.

When Does Consolidation Make Sense?

• You Can Get a Lower APR: The primary way to save money is by securing a new loan with an Annual Percentage Rate (APR) that is *lower* than the average APR of your current debts. This calculator shows you the potential interest savings in real time.
• You Need a Lower Monthly Payment: Even if the interest rate isn't much lower, you might be able to extend the loan term (e.g., from 3 years to 5 years). This will lower your total monthly payment, freeing up cash flow. **Warning:** Be careful, as a longer-term may mean you pay more in total interest, even with a lower rate.
• You Want Simplicity: Juggling multiple due dates, payments, and statements can be stressful. A single loan simplifies your financial life and reduces the risk of missing a payment.

Things to Consider

Before consolidating, check for any origination fees on the new loan, as this will add to your total cost. Also, be sure you have a plan to avoid running up new balances on the S credit cards you've just paid off.