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Debt Consolidation Calculator
Compare debt consolidation options and find the best strategy to save money and pay off debt faster
Total Debt
$16,000
3 debts
Monthly Payments
$525
Current total
Payoff Time
4y 6m
Current strategy
Best Option
Balance Transfer
Save $3,472
Current Debts
Current Debt Summary
Total Debt: $16,000
Monthly Payments: $525
Avg Interest Rate: 16.50%
Total Interest: $5,502
Payoff Time: 4y 6m
Payment Strategy
Consolidation Options
Personal Loan Consolidation
Monthly Payment: $347
Total Interest: $4,792
Total Savings: +$711
Balance Transfer
Transfer Fees: $480
Total Interest: $1,550
Total Savings: +$3,472
Home Equity Loan
Monthly Payment: $146
Total Interest: $10,290
Total Savings: -$7,288
⚠️ Your home is collateral. Risk of foreclosure if you cannot pay.
Analysis & Recommendations
💡 Recommended Option
Balance Transfer
Could save you $3,472 compared to your current debts.
📊 Debt Analysis
Debt-to-Income Ratio: Enter income to calculate
Number of Debts: 3
Highest Interest Rate: 22.99%
✅ Consolidation Benefits
- • Simplify to one monthly payment
- • Potentially lower interest rate
- • Fixed payment schedule
- • Improve credit utilization
- • Reduce payment management stress
⚠️ Considerations
- • May extend payoff timeline
- • Origination fees and closing costs
- • Risk of accumulating new debt
- • Home equity loans use home as collateral
🎯 Action Items
- 1. Stop using credit cards to avoid new debt
- 2. Check your credit score to qualify for best rates
- 3. Shop around with multiple lenders for rates
- 4. Consider debt counseling if struggling with payments
- 5. Build emergency fund to avoid future debt
Option Comparison
| Option | Monthly Payment | Total Cost | Payoff Time | Total Interest | Savings |
|---|---|---|---|---|---|
| Current Debts | $525 | $21,502 | 4y 6m | $5,502 | - |
| Personal Loan | $347 | $20,792 | 5 years | $4,792 | $711 |
| Balance Transfer ⭐ Best | $525 | $18,030 | 2y 10m | $2,030 | $3,472 |
| Home Equity Loan | $146 | $28,790 | 15 years | $12,790 | -$7,288 |
Debt Consolidation Guide
When to Consolidate
- • You qualify for a lower interest rate
- • You have multiple high-interest debts
- • You want to simplify payments
- • Your credit has improved since taking on debt
- • You can stick to a payoff plan
Types of Consolidation
- • Personal Loan: Fixed rate, unsecured
- • Balance Transfer: Low intro rate, credit required
- • Home Equity: Lowest rates, home at risk
- • 401k Loan: Low rate, retirement risk