Frequently asked questions

What is a debt consolidation loan?

A debt consolidation loan combines multiple debts — such as credit cards or personal loans — into one single loan with one monthly payment. This can make repayment simpler and may reduce your overall interest cost depending on your rate.

How does this debt consolidation calculator work?

This calculator totals your current debts and compares them to a new consolidation loan based on the interest rate and loan term you enter. It estimates your new monthly payment, total interest, and potential savings.

Will consolidating debt lower my monthly payment?

It can. If the consolidation loan has a lower interest rate or longer term, your monthly payment may decrease. However, extending the loan term may increase total interest paid.

Does this calculator include fees?

No. This calculator estimates principal and interest only. It does not include lender fees, balance transfer fees, or variable interest changes.

Is debt consolidation right for credit card debt?

Debt consolidation is commonly used for high-interest credit card balances. It may help reduce interest costs and simplify repayment into one predictable payment.