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The debt consolidation calculator below can help you decide if consolidation is right for you. The calculator will suggest the best way to consolidate your debt and estimate your savings with a debt consolidation loan.
Debt consolidation calculator
How to use the debt consolidation calculator
Step 1: Enter the balances, interest rates and monthly payments you currently make toward your unsecured debts, like credit cards, personal loans and payday loans.
Click "I'm done" and look at the calculator results, based on the figures you entered:
Total balance: The sum of all your debts, or what you owe in total.
Combined interest rate: Your average weighted interest rate for all the debts you put in the calculator.
Total monthly payment: The amount you're paying monthly toward these debts, including interest.
When you'll be debt-free: The amount of time until you are debt-free, based on your current balance and monthly payments.
Step 2: Choose your credit score range to see your debt consolidation options. Depending on the size of your debt and credit score, a balance transfer card or debt consolidation loan may be a good fit.
If you’re interested in a consolidation loan, drag the sliders below the table to enter an estimated rate and the repayment term you want (in years) for the new loan.
Step 3: Look at the comparison between your current debts and the new debt consolidation loan.
Debt consolidation makes the most sense when your new total payment is less than your current total payment, and you save money on interest.
What is debt consolidation?
Debt consolidation rolls your existing debts into one, ideally with a lower interest rate and shorter payoff time, saving you money and time until payoff. This is often accomplished with a debt consolidation loan, but there are other ways to consolidate debt depending on your specific situation.
Ways to consolidate debt
Debt consolidation loan: These loans, usually from an online lender, credit union or bank, provide a large amount of money to pay off multiple debts, leaving you with one monthly debt payment.
Balance transfer credit card: This option transfers credit card debt to a credit card that charges no interest for a promotional period, typically 15 to 21 months.
Home equity loan: If you own your home, you may be able to get a loan based on the equity in your home to pay off your other debts, but you risk losing your home if you don’t keep up with payments.
Retirement account loan: If you have a savings or employer-sponsored retirement account, you could take out some of that money to pay off your debts. The downsides are less funds for your retirement, and if you can’t repay the loan, you’ll owe penalties and taxes.
Debt management plan: This option combines several debts into a single monthly payment at a lower interest rate than most credit cards or loans, but it typically includes startup and monthly fees, and it often takes three to five years to repay the debt.
Which lender is right for me?
NerdWallet has reviewed more than 35 lenders to help you choose one that’s right for you. Below is a list of lenders that offer standout debt consolidation loans.
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