Debt Consolidation Calculator
Our debt consolidation calculator allows you to compare your current high-interest debts, such as credit cards and personal loans, against a single, lower-interest consolidation loan. Discover how much you can save on interest charges, reduce your monthly out-of-pocket expenses, and shorten your path to becoming debt-free.
How This Calculator Works
Our mortgage paymant is designed to provide you with accurate and quick estimates, helping you make informed financial decisions. Here’s how it works:Input Your Details:
Enter the required information, such as loan amount, interest rate, and loan term, into the calculator fields
Instant Calculation:
The calculator processes your data in real-time, using advanced algorithms to provide precise results.
View Your Results:
Instantly see your estimated monthly payments, total interest, and repayment schedule.
Adjust and Compare:
Modify the inputs to explore different scenarios and find the loan option that works best for you.
Got Questions?
What is debt consolidation?
Debt consolidation is a financial strategy that involves taking out a new loan to pay off multiple smaller debts. By combining various balances into one account, you simplify your monthly bill-paying process and, ideally, secure a lower interest rate than the average of your previous debts.
Which types of debt can I consolidate?
Most unsecured debts can be consolidated, including:
Credit card balances
High-interest personal loans
Medical bills
Department store cards
Payday loans
You can also use a home equity loan to consolidate these debts into a secured mortgage-based product.
How do I know which loan program is right for me?
Yes. Many homeowners use a Cash-Out Refinance or a Home Equity Line of Credit (HELOC) for debt consolidation. Because these loans are secured by your property, they typically offer much lower interest rates than credit cards, providing significant monthly savings.
Is there a downside to consolidating debt over a longer term?
While consolidating can lower your monthly payment, extending the repayment term (e.g., from 3 years to 10 years) may result in paying more in total interest over the life of the loan. Use the calculator to compare the total interest paid for both scenarios to ensure you are making the best financial choice.
Are there fees associated with debt consolidation loans?
Some consolidation options involve costs such as loan origination fees, balance transfer fees (for credit cards), or closing costs (for mortgage-based loans). It is important to factor these into the calculator to determine your true “break-even” point and total savings.
