Free Debt Consolidation Calculator - Simplify Your Payments
Calculate potential savings from consolidating multiple debts into one payment. Compare interest rates, monthly payments, and payoff timelines.
💡 Millionaire Secret: Consolidation only works if you stop creating new debt. Cut up the cards and focus on the single payment to truly win.
Take Control of Multiple Debts with Smart Consolidation
If you're juggling multiple debt payments each month, consolidation could be your path to financial simplicity. This calculator shows you exactly how much you could save by combining your debts into a single loan with better terms. From credit cards at 25% rates to personal loans, we help you find the best strategy for your situation.
Consolidation isn't just about getting a lower rate – it's about creating a clear, manageable plan for financial freedom. With one monthly payment, one due date, and one fixed interest rate, you can eliminate confusion and focus on paying off your debt faster. Our calculator compares your current situation with different consolidation options to show you the real impact on your monthly budget and total savings.
Key Benefits of Consolidation
- •Simplification: One payment instead of multiple due dates
- •Potential Savings: Lower rates can save thousands in interest
- •Credit Improvement: Lower utilization and improve your credit score
- •Peace of Mind: Less stress with a clear payoff plan
Use this calculator to explore different scenarios and see if consolidation makes sense for you. Enter your current debts and compare with personal loan options, balance transfers, or home equity lines of credit. The numbers don't lie – find out if you can save money and simplify your financial life today.
🎯 Quick Consolidation Tips
Your Current Debts
Consolidation Loan Terms
Typical personal loans: 6-25% APR
Typical: 24-84 months (2-7 years)
Debt Calculators by Type
6 options available
For Planning Purposes Only — These calculations are estimates for educational and planning purposes. Always consult with qualified financial professionals before making financial decisions.
Related Tools
Complete your financial planning with these tools
Budget Calculator
Create your perfect 50/30/20 budget
Salary Calculator
Convert hourly to salary
Tax Calculator
Maximize your refund
Most Popular
Simplify Your Debt and Save Thousands of Dollars
Debt consolidation can be a powerful strategy to simplify your finances and potentially save thousands of dollars in interest. If you have multiple credit cards, personal loans, or other high-interest debts, combining them into a single loan with a lower interest rate can significantly reduce your monthly payments and the total cost of your debt.
The average American carries $6,194 in credit card debt spread across 3-4 different cards, each with interest rates ranging from 18% to 29%. Juggling multiple due dates, variable interest rates, and minimum payments can be overwhelming and expensive. Consolidation offers a solution: one payment, one rate, one clear path to financial freedom.
When Consolidation Makes Sense
- •Lower Rate: You can qualify for a rate at least 2-3% lower than your current debts
- •Simplification: You have 3+ separate debts with different due dates
- •Financial Discipline: You won't accumulate new debt on paid-off cards
- •Cash Flow: You need lower monthly payments to improve your budget
Our calculator helps you analyze whether consolidation is the right decision for your specific situation. Compare your current payments with different consolidation options, including personal loans, balance transfers, and home equity lines of credit (HELOC). See exactly how much you could save in monthly payments and total interest.
📊 The Reality of Multiple Debts
Consolidating $25,000 in credit card debt (22% APR) to a personal loan (12% APR) can save over $200/month and $15,000 in total interest.
Consolidation Options Compared
| Option | APR Range | Term | Pros | Cons |
|---|---|---|---|---|
| Personal Loan | 6-25% | 2-7 years | Fixed rate, no collateral | Requires good credit |
| Balance Transfer | 0-3% | 12-21 months | 0% promotional APR | 3-5% fee, temporary |
| HELOC | 7-12% | 10-30 years | Low rate, tax deductible | Home as collateral |
| 401k Loan | 4-6% | 5 years | Very low rate | Retirement risk |
When to Consolidate?
✅ Consolidate If...
- • You get lower rate (2%+ difference)
- • You reduce total monthly payment
- • You simplify multiple payments
- • You have discipline to not get more debt
- • You qualify for good terms
❌ Don't Consolidate If...
- • New rate is same or higher
- • You extend term without benefit
- • You haven't changed spending habits
- • You just want lower payments
- • You have bad credit (high rates)
Step-by-Step Consolidation Process
List Debts
Write down balances, APR rates, and minimum payments for all debts
Compare Options
Research personal loans, balance transfers, HELOC options
Apply & Approve
Apply for best option and wait for approval with final terms
Pay & Close
Use funds to pay old debts, keep accounts open
🎉 Real Success Stories
Jessica, 34
Consolidated $28,000 across 5 credit cards into an 11.5% personal loan. Reduced monthly payment from $850 to $580.
The Martinez Family
Used 8% HELOC to consolidate $45,000 in mixed debt. Saved $18,000 in total interest.
Robert, 29
0% balance transfer for 18 months on $15,000. Paid it all off with no additional interest.
⚠️ Costly Mistakes to Avoid
❌ Common Mistakes
- • Consolidating without getting a lower rate
- • Closing credit cards after paying them off
- • Accumulating new debt on empty cards
- • Choosing very long terms just for low payments
- • Not changing underlying spending habits
✅ Winning Strategies
- • Compare multiple lender offers
- • Keep credit accounts open
- • Automate payments to avoid late fees
- • Create a budget to avoid new debt
- • Consider extra payments to accelerate payoff
Complementary Tools
Maximize your success by combining our consolidation calculator with these essential tools.
Personal Loan Calculator
Calculate exact payments and total costs of personal loans for consolidation.
Debt Payoff Calculator
Compare paying debts individually vs consolidating with avalanche and snowball methods.
Budget Calculator
Create a solid budget to avoid accumulating new debt after consolidating.
Your Path to Financial Simplicity Starts Today
Don't let multiple debts complicate your life. Find out if consolidation is your solution.
Analyze My Debt NowPopular Calculators
Frequently Asked Questions - Debt-consolidation
What is debt consolidation?
Combining multiple debts into one loan with one interest rate, ideally lower. Instead of paying 5 different cards, you pay one monthly loan payment.
When does debt consolidation make sense?
When you get a lower rate than current debts, reduce monthly payments, or simplify multiple payments. If you have cards at 20%+ APR, a 12% APR loan saves money.
What options do I have for debt consolidation?
Personal loan (6-25% APR), 0% APR balance transfer (12-21 months), HELOC (7-12% APR), 401k loan (4-6% APR but risky). Compare rates and terms.
Does consolidation hurt my credit score?
Temporarily yes from credit inquiry (-5 points for 6 months). But long-term improves your score by lowering credit utilization and making on-time payments easier.
What mistakes should I avoid when consolidating?
Don't close paid-off cards (hurts history), don't accumulate new debt on empty cards, don't choose very long terms just for low payments, and don't consolidate if you won't change spending habits.
How much can I save by consolidating debt?
Depends on your current rates vs new rate. Consolidating $20,000 in cards (20% APR) to personal loan (12% APR) can save $100-300/month and thousands in total interest.