Debt Consolidation Loan Calculator - Compare Interest & Payment Savings
See how combining credit card balances and high-interest personal loans into a single low-rate payment cuts total interest and clears debt sooner.
Monthly Payment Savings
Total Lifetime Interest Saved
Current Debts vs. New Consolidated Loan
Frequently Asked Questions
How does debt consolidation save you money?
Debt consolidation combines multiple high-interest debts (such as credit cards with 20%–29% APRs) into a single personal loan with a lower fixed interest rate (e.g., 8%–14% APR). This reduces your total monthly payment and cuts thousands of dollars in interest charges.
Does debt consolidation hurt your credit score?
Applying for a new loan causes a temporary small dip (5–10 points) due to a hard inquiry. However, using the loan to pay down maxed-out credit cards immediately drops your credit utilization ratio, which typically boosts your credit score significantly within 30 to 60 days.
What is the difference between debt consolidation and debt settlement?
Debt consolidation pays off your creditors in full via a new lower-rate loan without damaging your credit history. Debt settlement involves stopping payments, negotiating to pay less than you owe, and incurs severe, long-lasting damage to your credit report.
What should I look out for before consolidating debt?
Watch out for origination fees (typically 1% to 6% of the loan amount), make sure the new monthly payment comfortably fits your budget, and avoid running up new balances on the credit cards you just paid off.