Do you have a lot of unsecured debt that you’re looking to pay off? Our Debt Consolidation Calculator is best for anyone with various types of high-interest debt. It will help you figure out how much you can save by consolidating all of it in one loan.
Start by entering the current balance, minimum monthly payment, and interest rate for the following debt types:
- credit card
- line of credit
- other debt
Click “Add New Debt” to add as many debt types as you like.
Next, choose the interest rate. This represents the interest rate of your future loan to calculate how much you can save by consolidating your debts. Choose between 12 percent and 20 percent. Next, choose the term. The term represents the length of your future loan. Choose between one and 10 years.
Once you’ve completed all the required fields, click the “calculate” button to see how much you could save by consolidating your debts.
Under the heading “debt repayment information,” you can see how much interest you’ll pay if you fully pay off the debt on your own. In this section, you’ll see the amount of principal, interest and total cost of making your minimum monthly payments versus a debt consolidation loan. This shows you how much you save in interest by paying off your debts with a consolidation loan, not to mention how much sooner you’ll be financially free.
Under the heading “see your options,” you’ll see the various debt relief options along with their interest costs. The options are the following:
Not sure which debt solution is right for you? Click the button at the bottom of the calculator to get your free savings estimate.
If you’re unfamiliar with the term, debt consolidation is when you take out a single loan and use it to pay off all your existing creditors.
Consolidating your debts has several advantages. You only have a single monthly payment to make. This is usually lower than the total amount you’d otherwise have to pay for each debt. Debt consolidation loans are also usually at a lower interest rate, freeing up the potential to save thousands in interest over the life of your debts.
Debt consolidation is a good financial solution for some people, but it doesn’t work for everyone. Debt consolidation tends to have the greatest benefit when you can still pay the minimum monthly amounts of your individual debts and owe less than $10,000 in consumer debts.
Have you had credit issues? Has your credit been damaged or bruised? You could run into issues with debt consolidation. You may be required to pay a higher interest rate on your application could be turned down, but don’t despair. If that happens to you, there are other debt relief options out there that we can help you with.