Debt Consolidation Calculator

Compare Repaying Your Current Debts With the Debt Avalanche Method Against a Consolidation Loan to See if Debt Consolidation Is Worth It.

Visual Comparison

Payment Comparison

Amortization Schedule Comparison

How to Consolidate Multiple Debts Using a New Loan?

Debt consolidation example

Let’s say you have the following debts:

1. Credit card 1 balance: $3,500 at 19.9% interest, with a $120 minimum payment.
2. Credit card 2 balance: $5,500 at 20.9% interest, with a $110 minimum payment.
3. Credit card 3 balance: $7,500 at 18.9% interest, with a $130 minimum payment.
4. Credit card 4 balance: $8,500 at 22.9% interest, with a $150 minimum payment.

Debt Consolidation Loan:

• Loan Amount ($): $30,000
• Loan Term: 5 Year
• Interest: 10%
• Loan Fee: 5%

Your current debts carry an effective APR of 20.91%, while the consolidation loan (including fees) has an APR of 12.24%. Overall, the loan’s financing cost is lower, meaning new consolidation loan would save you money in the long run.

With a loan fee of $1500.00, you’ll actually receive $28,500.00 to pay off your existing balance of $25,000.00. This leaves you with a surplus of $3,500.00 after paying off your debts.

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