See if consolidating your debts could save you money and help you pay off debt faster.
Total Balance
$15,000.00
Avg. Interest Rate
14.83%
Total Monthly Payment
$400.00
Payoff Timeline
4 years, 6 months
Total Interest Cost
$6,842.55
You could save:
$2,413.87
in interest and pay off 1 year, 6 months sooner
| Metric | Current Debts | Consolidation Loan | Difference |
|---|---|---|---|
| Monthly Payment | $400.00 | $485.38 | +$85.38 |
| Total Interest | $6,842.55 | $3,978.68 | -$2,863.87 |
| Fees | $0.00 | $450.00 | +$450.00 |
| Time to Payoff | 4 years, 6 months | 3 years | -1 year, 6 months |
| Total Cost | $21,842.55 | $19,428.68 | -$2,413.87 |
Debt consolidation is the process of combining multiple debts into a single loan, often with a lower interest rate. This can simplify your payments and potentially save you money on interest.
Unsecured loans from banks, credit unions, or online lenders. Typically have fixed rates and terms between 2-7 years.
Typical rates: 6% - 36% APR
Cards offering low or 0% intro APR periods for transferring balances. Good for those who can pay off debt during promotional period.
Typical offer: 0% for 12-21 months
Use your home's equity as collateral. Lower rates but put your home at risk if you can't repay.
Typical rates: 3% - 12% APR
Borrow from your retirement account. No credit check but reduces retirement savings and growth.
Typical rates: Prime rate + 1-2%
Work with a credit counselor to create a repayment plan. May include reduced interest rates and waived fees.
Setup fee: $30-$50; Monthly fee: $20-$75
Companies that negotiate with creditors on your behalf. Research carefully to avoid scams.
Fees: Vary widely, often 15-25% of debt
Initially, your score might drop slightly due to the credit inquiry and new account. However, over time, making regular payments on the new loan and reducing your credit utilization can improve your score.
Debt consolidation typically makes sense if you can get a lower interest rate than your current debts, have steady income to make payments, and are committed to not taking on new debt while paying off the consolidation loan.
Debt consolidation combines multiple debts into one new loan without reducing what you owe. Debt settlement involves negotiating with creditors to accept less than the full amount you owe, which can significantly damage your credit score.
Most unsecured debts like credit cards, personal loans, and medical bills can be consolidated. Secured debts (mortgages, auto loans) and federal student loans typically cannot be included in general debt consolidation programs, though specialized options exist for student loans.
While requirements vary by lender, you'll typically need a credit score of 650 or higher to qualify for the best personal loan rates. Some lenders offer options for scores as low as 580, but rates will be higher.
Create a plan to eliminate credit card debt with optimal payments.
Calculate payments and see amortization schedules for any loan.
See how interest affects your savings and investments over time.
Create a personalized budget to manage your finances effectively.