Debt consolidation can be a useful strategy when you’re struggling to keep up with multiple payments. You can roll multiple unsecured debts into a single payment at a lower rate.
Consolidation may not be the right solution for everyone, though. Before you apply for a credit card or loan to consolidate debt, it’s important to know if this is the debt payoff strategy for you.
Use the calculator below to find out whether you should consolidate debt and how much you could potentially save.
Debt consolidation calculator
How to use the calculator
Enter the balances, interest rates and how much you pay towards your high-interest debts, such as credit cards, personal loans and payday loans.
Understanding your results
Total balance: The sum of all the debts you entered.
Combined interest rate: Your average weighted interest rate for all entered debts.
Current total payment: The full amount you have to pay back, including interest.
When you’ll be debt free: Based on your current balance and monthly payment, how long it’ll take you to be free of debt.
Debt relief: A strategy to use if you’re overwhelmed by debt and consolidation isn’t enough.
If consolidation may make sense for you:
New total payment: The new amount you’ll have to pay back, plus interest, if you consolidate.
Balance transfer cards: These cards are 0% interest cards onto which you can transfer certain kinds of debts and pay them off within the promotional no-interest period. Qualification requires good to excellent credit.
Personal loan: An unsecured loan that you can use to pay off your debt and then repay in fixed monthly installments. There are online lenders who make loans to average and bad credit borrowers.