Consolidation
Many debts.
Many debts.
One loan.
See if combining your debts into a single loan will save you money — or just rearrange the burden.
Your current debts.
Add all the debts you're thinking of consolidating.
$
%
$
Total debt
Weighted APR
Monthly payments
The loan offer.
Enter the terms of the loan you're considering.
%
mo
%
Usually 1–8%
Keep separate
Monthly payments
Months to payoff
Total interest
Total cost
Consolidation
Monthly payment
Months to payoff
Interest + fees
Total cost
Monthly payment swap.
Current
New
Monthly diff
Things to consider.
Longer term = more interest
A lower monthly payment might cost more in the long run.
Unsecured vs secured
Home-equity loans have lower rates but put your house at risk.
Don't rack up new debt
Consolidation only works if you don't use those paid-off cards again.
How debt consolidation works
Debt consolidation combines multiple debts into a single loan with one monthly payment. The goal is to get a lower interest rate, simplify your payments, or both.
Types of consolidation loans
- Personal loan — unsecured, fixed rate, 2–7 year terms
- Balance transfer card — 0% promo rate, usually 12–21 months
- Home equity loan — lower rates, but your home is collateral
- 401(k) loan — borrowing from yourself, but risky for retirement
When consolidation makes sense
- You qualify for a lower interest rate than your current debts
- The total cost (including fees) is less than staying separate
- You have the discipline not to accumulate new debt
- Simplifying to one payment helps you stay on track