Debt Consolidation Calculator

Debt consolidation works best when you can secure a new loan with an interest rate that's at least 5% lower than your current blended rate. For example, if your credit cards carry an average APR of 22%, finding a consolidation loan at 12-15% could save you thousands in interest and years of payments. This is especially true for balances over $10,000 where interest compounds significantly.

However, consolidation isn't magic — extending your loan term can mean paying more total interest even at a lower rate. The key is to choose the shortest term you can afford and commit to not accumulating new debt on those paid-off cards. Use this calculator to run different scenarios and find the sweet spot between affordable monthly payments and minimizing total interest paid. Consider speaking with a financial advisor if you're unsure which option is best for your situation.