Inputs
Use payments you actually expect to maintain.
Percentage-based card minimums can shrink as balances fall. This model instead holds every entered payment constant so the comparison is auditable.
Debt restructuring
Debt Consolidation Calculator
Compare three existing fixed-payment debts with one fixed-rate consolidation loan, including its term and upfront fee.
Total balance—
Monthly payment change—
Borrowing-cost change—
Keep separate payments
Total monthly payment—
Time until last payoff—
Total interest—
Consolidation scenario
Monthly payment—
Term—
Interest plus fee—
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Model convention
Existing debts use fixed payments and fixed monthly rates. The consolidation loan uses equal monthly instalments and treats the entered fee as an extra upfront cost.
Interpretation
One payment does not automatically mean lower cost.
Consolidation can simplify repayment, but a longer term or fee can offset a lower rate.
Source
Consolidation simplifies payments but changes terms.
The CFPB defines debt consolidation as borrowing money to repay separate loans and then repaying one loan over time. It notes that the new loan might have a lower rate.