What is a debt consolidation calculator?
A tool that compares your existing debts — paid separately at their own minimum payments — against rolling them into one new consolidation loan. It shows the monthly payment, payoff time, and total interest on both sides so you can see the real trade-off before applying for anything.
How does debt consolidation work?
A lender pays off (or you use the loan proceeds to pay off) your existing debts, and you’re left with one new loan, one monthly payment, and one interest rate instead of several. It doesn’t erase debt — it restructures it, which can lower your rate and simplify payments, or extend how long you’re in debt if the new term is longer.
Is debt consolidation a good idea?
It depends on the numbers, not a blanket rule. Consolidation tends to help when the new rate is meaningfully lower than your blended current rate and the term isn’t stretched out so far that total interest rises. Compare your own figures above rather than assuming either outcome — a longer term can lower the monthly payment while still costing more overall.
Does debt consolidation hurt your credit?
Applying triggers a hard inquiry, which can cause a small, temporary dip, and closing paid-off accounts can shorten your average account age and change your credit utilization — both minor factors in most scoring models. Making on-time payments on the new loan and keeping utilization low afterward are generally more significant to your score over time. This calculator does not model credit scores.
Can I get a debt consolidation loan with bad credit?
It’s harder, and typically more expensive — lenders price weaker credit profiles with a higher APR, which can shrink or erase the interest savings this calculator shows. Some lenders and credit unions specialize in fair or bad-credit consolidation loans; a nonprofit credit counselor can also help evaluate a debt management plan as an alternative.
What types of lenders offer debt consolidation loans?
Banks, credit unions, and online personal-loan lenders all commonly offer them, usually as an unsecured personal loan. Some borrowers instead use a secured option like a home equity loan, which can carry a lower rate but puts the home at risk if payments are missed — this calculator models the unsecured, fixed-rate case.
Is a personal loan the same as a debt consolidation loan?
Usually, yes — "debt consolidation loan" describes how you use the money (to pay off other debts), while a personal loan is the product itself. Most consolidation loans are just personal loans used for that purpose, with the same fixed rate, fixed term, and fixed monthly payment.
Will consolidating always save me money?
No. It saves money when the new rate is low enough and the term isn’t stretched so far that total interest rises — both of which this calculator shows explicitly. A longer term can lower your monthly payment while still costing more in total interest, which the comparison panel flags rather than hides.
Should I use this or the Debt Payoff Calculator?
Use this page when you’re weighing whether to replace your existing debts with one new loan. Use the Debt Payoff Calculator when you’re keeping your debts as they are and want to find the fastest or cheapest order to pay them off (snowball, avalanche, or a custom order) — it also simulates month by month rather than the closed-form estimate used here.
What if one of my debts never pays down at the minimum?
The calculator flags it rather than showing a fake payoff date — this happens when the minimum payment is at or below the interest charged each month, so the balance never shrinks. Consolidating into a loan that actually amortizes may be the only way to clear a balance stuck like this.