Consolidation is not automatically a good deal
Rolling several debts into one loan replaces a set of payments with a single payment. That is easier to manage, and if the new rate is lower than your current rates you may pay less interest overall. But the monthly payment also drops when the term is stretched, and a smaller payment over more months can mean more total interest even at a lower rate. This calculator labels the result in words: it will tell you plainly whether consolidating saves you money or costs you more.
What the comparison assumes
- Now: each debt keeps its own rate and its own fixed monthly payment until it is cleared. The "current" totals are the interest still to come from today onward, not interest you have already paid.
- Consolidated: one amortizing loan for the sum of your balances plus any fee, at the rate and term you enter, with equal monthly payments.
- The saving or extra cost compares interest still to come plus the fee. It does not model missed payments, promotional teaser rates, penalties, or insurance added to the loan.
Before you sign anything
Check the rate you were actually quoted, not an advertised "from" rate, and read whether the fee is added to the loan or paid up front. Ask whether the loan is secured against your home or car, because a secured loan turns unsecured debt into debt that can cost you the asset. Consolidating also frees up the cards you paid off, and running them back up is the most common way people end up worse off than before.
FAQ
Why does my saving turn into a loss when I lengthen the term?
Interest is charged on the balance every month you carry it. Doubling the number of months roughly doubles the number of times interest is applied, which can outweigh a lower rate. Try the same rate at a shorter term and watch the result flip.
Does the fee count as interest?
It is counted as part of the cost of consolidating. The fee is added to the amount borrowed, so you also pay interest on it.
What if one of my debts never gets paid off at its current payment?
If a payment does not even cover the monthly interest, that balance grows forever and no finite interest total exists. The calculator says so instead of printing a made-up saving.
Is this financial advice?
No. It is a math tool. Figures are estimates based only on what you type, and your lender's numbers govern.