Debt Consolidation Calculator
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Debt consolidation calculator
How to use the debt consolidation calculator
- 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.
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 at once, leaving you with only one monthly debt payment. Terms typically range from one to seven years.
- 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, making the debt easier to pay off.
- Debt management plan: This option combines several debts into a single monthly payment at a lower interest rate than most credit cards or loans. It typically includes small startup and monthly fees, and it usually takes three to five years to repay the debt.
- 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 the payments.
- Retirement account loan: If you have an employer-sponsored retirement account, like a 401(k), 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 consolidation options for bad credit
Do debt consolidation loans hurt my credit score?
Weighing the pros and cons of debt consolidation
Pros
You pay less in interest.
You may get out of debt faster.
You have only one payment.
You have a clear finish line.
Cons
You may not qualify for a low enough rate.
You still have debt you need to manage.
Consolidation won’t fix core spending issues.
Pros of debt consolidation
Cons of debt consolidation
Which lender is right for me?
Personal loans from our partners
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Article sources
- 1. National Bureau of Economic Research. Prodigals and Projecture: An Economic History of Usury Laws in the United States from Colonial Times to 1900. Accessed May 2, 2025.
- 2. Federal Register. Federal Interest Rate Authority: A Rule by the Federal Deposit Insurance Corporation on 07/22/2020. Accessed May 2, 2025.
- 3. Consumer Financial Protection Bureau. What Is a Debt Relief Program and How Do I Know if I Should Use One?. Accessed Jan 16, 2025.
- 4. Internal Revenue Service. Canceled debt – Is it taxable or not?. Accessed Apr 1, 2025.
- 5. Federal Reserve. Military Lending Act. Accessed May 2, 2025.
- 6. Consumer Financial Protection Bureau. Consumer Use of Buy Now, Pay Later and Other Unsecured Debt. Accessed Jan 24, 2025.
- 7. Center for Responsible Lending. Unsafe Harbor: The Persistent Harms of High-Cost Installment Loans. Accessed May 2, 2025.
- 8. Angi.com. How Much Does It Cost to Make My Home Accessible?. Accessed Nov 12, 2024.
- 9. Consumer Financial Protection Bureau. What are the costs and fees for a payday loan?. Accessed Jun 6, 2025.
- 10. Center for Responsible Lending. Unsafe Harbor: The Persistent Harms of High-Cost Lending. Accessed Jun 6, 2025.
- 11. Internal Revenue Service. Retirement Topics - Plan Loans. Accessed Apr 8, 2025.
- 12. Internal Revenue Service. Retirement topics: Exceptions to tax on early distributions. Accessed Apr 8, 2025.
- 13. Administrative Office of the U.S. Courts. Bankruptcy Basics. Accessed Apr 8, 2025.
Methodology
How we chose the best personal loans
Our team of consumer lending experts follow an objective and robust methodology to rate lenders and pick the best.
35+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
70+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
Star rating categories
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 70 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
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