Debt Consolidation Calculator
Calculate if consolidating your debt makes financial sense with our free debt consolidation calculator. Compare interest rates, monthly payments, and total costs.
Category: Financial
Debt Consolidation Calculator: Combine Multiple Debts & Save Money
Free debt consolidation calculator to see if combining multiple high-interest debts can save you money. Compare current debt payments versus a consolidation loan to find the best strategy.
Category: Calculator
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Frequently Asked Questions
What is debt consolidation?
Debt consolidation involves combining multiple debts into a single loan, usually with a lower interest rate. This simplifies your finances by giving you one payment to make each month instead of several, and can potentially save you money on interest if you qualify for a lower rate.
When does debt consolidation make sense?
Debt consolidation makes sense when: 1) You can get a lower interest rate than your current debts, 2) You're committed to not taking on new debt, 3) The monthly payment is affordable, 4) You'll save money in the long run, and 5) You're confident you can make the payments throughout the loan term.
What are the risks of debt consolidation?
The risks of debt consolidation include: 1) Potentially extending your debt payoff timeline, resulting in more interest paid overall, 2) Temptation to accrue new debt once credit cards are paid off, 3) Possible fees or costs for the new loan, 4) Potential impact on your credit score, and 5) Risking collateral if you use a secured loan like a home equity loan.