Debt Consolidation Calculator

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.

You can also see our picks for the best debt consolidation loans.

Debt consolidation calculator

How to use our debt consolidation calculator

Step 1: Enter the balances, interest rates and monthly payments you currently make toward your unsecured debts. This may include credit cards, personal loans and payday loans.

Don't include secured debts like car loans or low-rate student loans here. There are better ways to manage those debts. (Learn more about auto refinancing and student loan refinance options.)

Click "I'm done" and then “Calculate.” Based on the figures you entered, the calculator shows:

• 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. 

• 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 APR (the loan’s interest rate, plus fees) 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.

Ways to consolidate debt

1. 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. This leaves you with only one monthly debt payment. Terms on debt consolidation loans typically range from one to seven years.

2. Balance transfer credit card: This option transfers your existing credit card debt to a new credit card that charges no interest for a promotional period, typically 15 to 21 months. This makes the debt easier to pay off, since you aren’t spending money on interest.

3. Debt management plan: This option combines several debts, usually credit cards, into a single monthly payment at a lower interest rate. A credit counseling agency can enroll you in a debt management plan and charges small startup and monthly fees. It usually takes three to five years to repay the debt.

4. 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.

5. 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

Debt consolidation loans for bad credit are available from many online lenders. These loans have terms up to seven years, and amounts can be as high as $50,000. Some lenders may have a minimum credit score requirement between 550 and 600, while others may accept borrowers with no minimum credit score.

Credit unions are another smart place to turn, since they tend to look more favorably on bad-credit borrowers. Check with your local credit union first, though you can also look for national credit unions that offer personal loans.

If you can’t qualify for a debt consolidation loan with a low enough interest rate, debt payoff options like the debt snowball and debt avalanche methods are good alternatives. These DIY strategies can be extremely effective and don’t require you to apply for credit.

Do debt consolidation loans hurt my credit score?

You may see a temporary dip in your credit score after applying for a debt consolidation loan. That’s because lenders require a hard credit pull as part of the application, which knocks a few points off your score.

However, if you make on-time payments on the new loan and avoid running up new debt, your credit scores should rebound and even grow over time. This can make it easier to qualify for more affordable financing in the future.

» MORE: Does debt consolidation hurt your credit?

Weigh the pros and cons of debt consolidation

If you’re not sure whether debt consolidation is right for you, consider the benefits and risks to consolidating your debts.

Pros of debt consolidation

You pay less in interest: If you consolidate with a product that has a lower interest rate than your credit cards or other debts, you’ll save money on interest. This can make getting out of debt easier.

You may get out of debt faster: Since you’re paying less interest, you could potentially apply those savings to your debt repayment and get out of debt even faster.

You have only one payment: Instead of juggling multiple debt repayments, consolidating your debts means you only have to worry about making one payment. This can help you avoid late fees or additional interest.

You have a clear finish line: Paying off debt is challenging, but with consolidation, you have a clear plan and a finish line to work toward. As long as you make your payments on time, you’ll know when you’ll be out of debt for good.

Cons of debt consolidation

You may not qualify for a low enough rate: Depending on your credit score, you may not be able to qualify for a lower interest rate than your current debts. In this case, consolidation may not be the best option.

You still have debt you need to manage: Debt consolidation doesn’t mean you’re debt-free. You still have to manage payments for your new loan, balance-transfer card or other consolidation product.

Consolidation won’t fix core spending issues: If you struggle with chronic overspending, consolidation may make things worse. This is especially true if you’re consolidating credit card debt, since consolidation “frees up” your credit cards by moving the existing balance elsewhere.

Which lender is right for me?

NerdWallet has reviewed more than 30 lenders to help you choose one that’s right for you. Below is a list of lenders that offer standout debt consolidation loans.