Debt Consolidation Calculator
This debt consolidation calculator compares the cost of all your current debts with consolidating them into one new loan to figure out how much you can save.
Simply enter all of the debts that will be consolidated, along with their corresponding principal balances, interest rates, and monthly payment amounts. Once you have all your debts entered then enter the new loan information below that. The "Calculate" button will provide the answers.
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Debt Consolidation Loan Calculator Tips
Are you worried that your debt is too high? One possible answer is a debt consolidation loan.
The strategy is simple. Take out a single debt consolidation loan and use the proceeds to pay off all your other debts. In other words, by having only one new loan you will be accountable to only one lender as compared to several lenders which makes it easier to track and monitor you debt payoff process.
Whether debt consolidation saves you money or costs you is simply a matter of crunching the numbers. Fortunately, this debt consolidation calculator makes the process easy. It compares the two financial alternatives (consolidate vs. not) and calculates how much you save on interest by doing a loan consolidation.
What To Watch Out For…
Even though consolidating all of your existing credit commitments into a single monthly repayment might sound like a good idea, there are a few things you need to ask yourself first:
The answer to these questions is different for everyone. It simply depends on your current financial situation. You may want to keep your existing loans, even if the payments are higher. Remember that, in some cases, you may actually pay more in interest over time with your new debt consolidation loan.
Benefits of Debt Consolidation
The good thing about consolidating your loans is you get a chance to lower your monthly payments and possibly save interest. You can structure the loan so that your monthly payments are affordable and it will be spread to a longer term so it’s easier to keep up with the payments. With only one payment to think about it should make budgeting easier.
5 Steps To Debt Consolidation
Step 1 – Gather Your Debt Details
Before you consolidate, you need to know your current total debt burden and the interest rates on each loan. Get all the terms for every loan and list them out. Then input all this information into the debt consolidation calculator to find out how much you will save in interest.
Step 2 – Explore Your Options
Step 3 – Shop For Debt Consolidation Programs
Step 4 – Apply For Debt Consolidation
Step 5- Stick To Your Commitment
Debt Consolidation Calculator Terms & Definitions
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