A walkthrough, end to end.
- 1
Enter each existing debt's balance, APR, and minimum monthly payment.
- 2
Enter the consolidation loan's terms (rate, term, optional origination fee).
- 3
The calculator compares total cost of paying minimums vs. consolidating into a single loan.
Consolidation comparison
Sum existing debt balances and minimum payments. Compute total interest paid at minimum-only payments. Compare to consolidating the same total balance at the new rate over the new term. Subtract any origination fees.
What you can do with this.
Credit card debt to personal loan
$15K spread across 3 cards at 22-25% APR. Consolidate into $15K personal loan at 12% over 5 years. Often saves thousands in interest IF you don't run up the cards again afterward.
0% balance transfer cards
Some cards offer 0% intro APR for 15-21 months on transferred balances (with 3-5% transfer fee). Best for borrowers who can pay off during the intro period — interest savings dwarf the fee.
Home equity loan consolidation
Use home equity to consolidate at 7-8% (vs 22% credit card). Major caveat: you're putting your house on the line for unsecured debt. Only consolidate this way if you have rock-solid payoff discipline.
401(k) loan as consolidation
Borrow from your 401(k) to consolidate. Lower rate, but you lose investment compounding on borrowed amount AND must repay immediately if you leave job. Generally a bad idea.
Cash-out refinance for debt payoff
Refinance mortgage and take cash to pay off debts. New mortgage rate (~7%) often well below credit card rate. But: 30 years of payment on debt that should be gone in 5 — total cost can exceed status quo.
Behavioral risk
Consolidation works only if you stop adding new debt. Studies show 30-40% of consolidators run up balances again within 2 years — ending up worse off than before. Address spending first, math second.
When NOT to consolidate
Small balances you can knock out in 6-12 months. Debts with low rates already (auto, student federal). Origination fees that wipe out interest savings. The calculator's net savings number tells you when math doesn't justify it.
Debt consolidation 2026 — what's current
With credit card APRs at ~23% and personal loans for prime borrowers at 8-12%, consolidation math is more compelling than in past low-rate eras. Always run the calculator before signing — savings vary widely by individual rate spread.
Frequently asked.
Short term: small dip from new account inquiry. Long term: positive if it reduces utilization and you make on-time payments. Closing the original cards CAN hurt utilization — keep them open with $0 balance.
Generally if the consolidation rate is at least 5-7% below your existing weighted-average rate, math works. Smaller spreads may be wiped out by origination fees.
Federal student loans have special protections (income-driven plans, forgiveness) that you LOSE if you refinance to a private loan. Only consolidate federal student loans if you're certain you won't need those protections.
No. Calculations run entirely in your browser.