Debt Consolidation Calculator – NerdWallet


The debt consolidation calculator below can help you decide if consolidation is right for you. The calculator will suggest the best way to consolidate your debts and estimate your savings with a debt consolidation loan.

debt consolidation calculator

How to use the debt consolidation calculator

Step 1: Enter the balances, interest rates, and monthly payments you’re currently making for your unsecured debt, like credit cards, personal loans, and payday loans.

Click “I’m done” and watch the calculator output, based on the numbers you entered:

  • Total Balance: The sum of all your debts or what you owe in total.

  • Combined interest rate: Your weighted average interest rate for all the debts you put in the calculator.

  • Total monthly payment: The amount you pay monthly for these debts, including interest.

  • When you are debt free: The length of time until you are debt free, based on your current balance and monthly payments.

2nd step: Choose your credit score range to see your debt consolidation options, including personal loans. You will see typical annual percentage rate ranges offered by lenders, as well as alternative options for bad credit.

Lenders who offer direct payment to creditors send your loan proceeds directly to your creditors, simplifying the debt repayment process.

Drag the sliders below the table to enter an estimated rate and desired loan term (in years) for the new loan.

Step 3: Look at the comparison between your current debts and the new debt consolidation loan.

Debt consolidation makes more sense when your new total payment is less than your current total payment and you save interest charges.

What is debt consolidation?

Debt Consolidation consolidates your existing debts into one, ideally with a lower interest rate and shorter repayment term, saving you money and time until repayment. This is often accomplished with a debt consolidation loanbut there are other ways to consolidate your debt depending on your particular situation.

Ways to Consolidate Debt

  1. debt consolidation loan: These loans, usually from an online lender, credit union or bank, provide a large sum of money to pay off multiple debts, leaving you with one monthly payment.

  2. Balance transfer credit card: This option transfers credit card debt to a balance transfer credit card that charges no interest for a promotional period, usually 12 to 18 months.

  3. Home Equity Loan: If you own your home, you may be able to get a loan based on the equity in your home to pay off your other debts, but you risk losing your home if you don’t meet the payments.

  4. Retirement account loan: If you have a savings or employer retirement account, you could withdraw some of this money to pay off your debts. The downsides are less funds for your retirement, and if you can’t repay the loan, you’ll face penalties and taxes.

  5. Debt management plan: This option combines multiple debts into one monthly payment at a lower interest rate than most credit cards or loans, but usually includes a start-up fee and monthly fee, and often takes three to five years to repay the debt.

Which lender is right for me?

NerdWallet has reviewed over 30 lenders to help you choose the right one for you. Below is a list of lenders that offer debt consolidation loans.

Frequently Asked Questions

Can I consolidate all my debts into one payment?

You can consolidate all your debts into one payment using a balance transfer card or a debt consolidation loan.

Are debt consolidation loans hurting my credit rating?

You may see a temporary drop in your credit scores after applying for a debt consolidation loan, as lenders require high credit demand. However, your credit scores should rebound if you make payments on time and avoid going into debt.

What is the average interest rate for a debt consolidation loan?

Interest rates on conventional debt consolidation loans generally range from 6% to 36%. You must have strong credit to qualify for rates at the lower end of this range.

Can I use my credit cards after debt consolidation?

You can use your credit cards after debt consolidation; However, it’s best to use them sparingly and pay off balances in full to avoid paying interest and getting into more debt.


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