See if refinancing your debt into a single loan could save you money. Compare your current payments against a new consolidation loan.
Monthly Payment
$450
Total Interest Remaining
$5,200
Debt Free In
3 Years
New Monthly Payment
$350
Save $100/mo!
Total Interest Cost
$3,000
Debt Free In
5 Years
Consider sticking with the Snowball or Avalanche method to pay off your current debt instead.
Build a Snowball PlanConsolidation works best if you can secure a rate at least 5% lower than your current average. For balances over $10,000, this can save you thousands.
Lower payments often come from extending your loan term (e.g., 3 years to 7 years). This feels cheaper monthly but costs more total interest. Aim for the shortest term you can afford.
Try our main Debt Payoff Calculator to compare Avalanche vs Snowball strategies and see your full debt-free timeline.
Use Debt Payoff CalculatorDebt consolidation can be a good idea if you qualify for a lower interest rate than your current debts and you have the discipline not to rack up new debt. It simplifies payments and can save money on interest. However, it's not right for everyone — use our calculator above to see if the math works for you.
Initially, opening a new consolidation loan may cause a small dip in your score due to the hard inquiry. However, if you make on-time payments and reduce your credit utilization, your score typically improves over time.
Look for an APR lower than the weighted average of your current debts. For credit cards averaging 20-24% APR, a consolidation loan at 8-15% represents significant savings. The lower the rate, the more you save.
Debt consolidation uses a personal loan to pay off debts. A balance transfer moves debt to a new credit card with a promotional 0% APR period. Balance transfers work for smaller amounts you can pay off during the promo period; consolidation loans are better for larger amounts.