🔗 Debt Consolidation Calculator
Compare consolidation loan savings
💳 Current Debts
📊 Comparison
Is Debt Consolidation Right for You?
Debt consolidation combines multiple debts into a single loan, ideally at a lower interest rate. This strategy can simplify your finances, reduce monthly payments, and save money on interest—but it's not right for everyone.
When Consolidation Makes Sense
- Your credit has improved since you took on the original debt
- You can qualify for a significantly lower interest rate
- You're committed to not adding new debt during repayment
- Managing multiple payments is causing you to miss due dates
Consolidation Options to Consider
Personal loans offer fixed rates and terms from 2-7 years. Balance transfer cards provide 0% APR promotions (12-21 months). Home equity loans offer the lowest rates but use your home as collateral. Compare options carefully based on your situation.
Frequently Asked Questions
Is debt consolidation a good idea?
Debt consolidation is beneficial when you can get a lower interest rate than your current debts, simplify multiple payments into one, and commit to not adding new debt during repayment.
Does debt consolidation hurt your credit?
Short-term, a new loan may cause a small dip from the hard inquiry. Long-term, consolidation often improves credit by lowering utilization and establishing consistent payment history.