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Debt Consolidation Calculator

Compare debt consolidation vs current debts and evaluate savings

Current Debts

Debt 1 (e.g., Credit Card)

Debt 2

Debt 3

Consolidation Loan

Debt Consolidation Analysis

Current Payment

$$330/mo

Avg rate: 20.4%

Consolidation Payment

$$332/mo

36 mo at 12%

Monthly Savings

$$-2

Higher payment

Current Debt Breakdown

Debt 1: $$5000 @ 18%$$150/mo
Debt 2: $$3000 @ 22%$$100/mo
Debt 3: $$2000 @ 24%$$80/mo

Total: $$10000 | Estimated payoff: ~67 months

Cost Comparison

Current Debts

$$10750 interest

67 months

Consolidation

$$1957 interest + $$300 fees

36 months

Total savings: $$8416

Current DTI

6.6%

Within budget

Consolidation DTI

6.6%

Within budget

Credit Score Impact

May improve with lower utilization

Credit: good

Alternative Strategies

Balance Transfer Card

0% APR for 12-18 months, transfer fee 3-5%

Consolidation Tips

  • 💡 Consolidation rate significantly lower - good option
  • 💡 Consolidation payment higher - may not be beneficial

Note: Debt consolidation works best when new rate significantly lower than average current rate. Compare total cost including fees, not just monthly payment. Balance transfer cards offer 0% APR for 12-18 months with 3-5% transfer fee - good for paying off quickly. Home equity loans offer lowest rates but risk your home. Consider debt snowball (smallest first) for motivation or avalanche (highest rate first) for savings. Non-profit credit counseling may offer debt management plans. Avoid debt settlement companies - they can damage credit. Consolidation doesn't address spending habits - budget counseling important.

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