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Finance Charts Explore tools

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—
Existing debts

Keep separate payments

Total monthly payment—
Time until last payoff—
Total interest—
New loan

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.

Compare lower payment with lower total cost →

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.

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.

CFPB — Debt consolidation and other debt services