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Debt Consolidation
Estimated Monthly Savings
The Numbers
Analysis
Recommendations
A consolidation loan only helps if you avoid running the old cards back up afterward -- the payment relief here assumes the old balances stay at zero.
Watch for origination or balance-transfer fees on the new loan, which are not included in this comparison and reduce the real savings.
See the full monthly payment and amortization schedule for the new loan with the Loan Calculator.
Estimated Monthly Savings
The Numbers
Analysis
Recommendations
A consolidation loan only helps if you avoid running the old cards back up afterward -- the payment relief here assumes the old balances stay at zero.
Watch for origination or balance-transfer fees on the new loan, which are not included in this comparison and reduce the real savings.
See the full monthly payment and amortization schedule for the new loan with the Loan Calculator.
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Disclaimer
This calculator provides estimates for informational purposes only and does not constitute financial, medical, legal, or tax advice. Always consult a qualified professional about your specific situation.
How Debt Consolidation Savings Are Calculated
Debt consolidation replaces several existing debts with one new loan at a single interest
rate, ideally lower than what you’re paying now. Enter your total balance, the blended average
rate you’re currently paying, and what you currently pay each month combined across those debts,
then add the new consolidation loan’s rate and term to see whether it actually lowers your
monthly payment and total interest — or just moves the numbers around.
This is distinct from the Debt Payoff Calculator calculator, which compares avalanche and
snowball STRATEGIES for a list of separate existing debts at their own rates, never introducing
a new loan. This calculator is specifically about the “roll it all into one” question.
The Formula
Both paths use the standard fixed-rate amortization formula for the new loan:
M=P×(1+r)n−1r(1+r)n
where r is the monthly interest rate (annual rate ÷ 12) and n is the number of
monthly payments.
The current path has no such closed form, since the payment (not the term) is fixed — it’s
simulated month by month instead, the same way a credit card payoff calculation works, until the
balance reaches zero.
Worked Example
$20,000 in debt at a 22% blended current rate, currently paid down at $600/month,
compared against a new consolidation loan at 10% over 5 years:
At the current pace, that debt takes about 52 months to pay off, with roughly $11,192
in total interest.
The new loan’s monthly payment: about $424.94.
The new loan’s total interest over its full term: about $5,496.
Monthly savings: about $175.
Comparing each path’s own full payoff time, consolidating saves roughly $5,696 in total
interest.
Key Factors to Consider
A consolidation loan converts revolving debt into fixed-term debt, which changes the payoff
dynamic. Unlike a credit card, a consolidation loan has a fixed end date and payment — once
the new loan is taken out, there’s no way to make only a “minimum payment” that stretches things
out further, which can be a genuine benefit for someone who struggles with revolving debt
discipline.
Secured consolidation loans (backed by a home or vehicle) typically offer lower rates but
carry real risk. A home equity loan or line of credit used for debt consolidation often has a
meaningfully lower rate than an unsecured personal loan, but defaulting on it puts the secured
asset at risk in a way defaulting on unsecured credit card debt does not.
Your credit score affects both your current rates and your consolidation loan’s rate. A
consolidation loan generally makes the most financial sense when your credit qualifies you for a
meaningfully lower rate than your current blended average — check your likely rate before
assuming consolidation will help.
This calculator compares one point-in-time scenario, not ongoing financial behavior. The
actual outcome depends on sticking to the new loan’s payment plan and not accumulating new debt
— the math here shows what’s possible under those conditions, not a guarantee of what will
happen.
Common Mistakes
Treating the lower payment as free money. A lower monthly payment often comes from a longer
term, not just a lower rate — always check the lifetime interest comparison too, not just the
monthly number.
Ignoring fees. Origination fees, balance-transfer fees, and closing costs on the new loan
aren’t included in this comparison and can meaningfully cut into the real savings.
Running the old balances back up. The entire benefit here depends on the old debts staying
at zero after consolidating — adding new charges to a paid-off card erases the savings and can
leave you worse off than before.
Useful to Know
Consolidation reduces the interest rate and/or simplifies payments, but it never reduces the
amount actually owed — the balance just moves from several accounts to one, it doesn’t shrink.
The real savings come entirely from paying a lower rate over the loan’s term, which is exactly why
comparing the two paths’ full lifetime interest (not just the smaller monthly payment) is what
actually tells you whether consolidating is worth doing.
Cómo Se Calculan los Ahorros de la Consolidación de Deudas
La consolidación de deudas reemplaza varias deudas existentes con un nuevo préstamo a una sola
tasa de interés, idealmente más baja que la que pagas ahora. Ingresa tu saldo total, la tasa
promedio combinada que pagas actualmente, y lo que pagas actualmente cada mes combinado entre
esas deudas, luego agrega la tasa y el plazo del nuevo préstamo de consolidación para ver si
realmente reduce tu pago mensual e interés total — o simplemente reorganiza los números.
Esto es distinto de la calculadora Calculadora de Liquidación de Deudas, que compara las ESTRATEGIAS de
avalancha y bola de nieve para una lista de deudas separadas existentes a sus propias tasas,
nunca introduciendo un nuevo préstamo. Esta calculadora trata específicamente sobre la pregunta
de “combinarlo todo en uno”.
La Fórmula
Ambos caminos usan la fórmula estándar de amortización a tasa fija para el nuevo préstamo:
M=P×(1+r)n−1r(1+r)n
donde r es la tasa de interés mensual (tasa anual ÷ 12) y n es el número de
pagos mensuales.
El camino actual no tiene esa fórmula cerrada, ya que el pago (no el plazo) es fijo — en su
lugar se simula mes a mes, de la misma manera que funciona un cálculo de pago de tarjeta de
crédito, hasta que el saldo llega a cero.
Ejemplo Resuelto
$20,000 en deuda a una tasa combinada actual del 22%, pagada actualmente a $600/mes,
comparado con un nuevo préstamo de consolidación al 10% durante 5 años:
Al ritmo actual, esa deuda tarda aproximadamente 52 meses en pagarse, con
aproximadamente $11,192 en intereses totales.
El pago mensual del nuevo préstamo: aproximadamente $424.94.
El interés total del nuevo préstamo durante todo su plazo: aproximadamente $5,496.
Ahorro mensual: aproximadamente $175.
Comparando el tiempo de pago completo de cada camino, consolidar ahorra aproximadamente
$5,696 en intereses totales.
Factores Clave a Considerar
Un préstamo de consolidación convierte la deuda rotativa en deuda a plazo fijo, lo cual cambia
la dinámica de pago. A diferencia de una tarjeta de crédito, un préstamo de consolidación tiene
una fecha de finalización y un pago fijos — una vez tomado el nuevo préstamo, no hay forma de
hacer solo un “pago mínimo” que alargue las cosas aún más, lo cual puede ser un beneficio genuino
para alguien que tiene dificultades con la disciplina de deuda rotativa.
Los préstamos de consolidación garantizados (respaldados por una vivienda o vehículo)
normalmente ofrecen tasas más bajas pero conllevan un riesgo real. Un préstamo o línea de
crédito sobre el valor líquido de la vivienda usado para consolidar deudas a menudo tiene una
tasa significativamente más baja que un préstamo personal sin garantía, pero no pagarlo pone en
riesgo el activo garantizado de una forma en que no pagar una deuda de tarjeta de crédito sin
garantía no lo hace.
Tu puntaje crediticio afecta tanto tus tasas actuales como la tasa de tu préstamo de
consolidación. Un préstamo de consolidación generalmente tiene más sentido financiero cuando tu
crédito te califica para una tasa significativamente más baja que tu promedio combinado actual —
verifica tu tasa probable antes de asumir que la consolidación ayudará.
Esta calculadora compara un escenario en un momento dado, no un comportamiento financiero
continuo. El resultado real depende de apegarse al plan de pago del nuevo préstamo y no
acumular deuda nueva — las matemáticas aquí muestran lo que es posible bajo esas condiciones, no
una garantía de lo que sucederá.
Errores Comunes
Tratar el pago más bajo como dinero gratis. Un pago mensual más bajo a menudo proviene de
un plazo más largo, no solo de una tasa más baja — siempre verifica también la comparación de
intereses de por vida, no solo el número mensual.
Ignorar las tarifas. Las tarifas de originación, transferencia de saldo y costos de cierre
del nuevo préstamo no están incluidos en esta comparación y pueden reducir significativamente
el ahorro real.
Volver a acumular los saldos antiguos. Todo el beneficio aquí depende de que las deudas
antiguas permanezcan en cero después de consolidar — agregar nuevos cargos a una tarjeta
pagada elimina el ahorro y puede dejarte peor que antes.
Bueno Saber
La consolidación reduce la tasa de interés y/o simplifica los pagos, pero nunca reduce el monto
que realmente se debe — el saldo simplemente se traslada de varias cuentas a una sola, no
disminuye. El ahorro real proviene enteramente de pagar una tasa más baja durante el plazo del
préstamo, que es exactamente la razón por la que comparar el interés total de por vida de ambos
caminos (no solo el pago mensual más pequeño) es lo que realmente te dice si vale la pena
consolidar.
How is this different from the Debt Payoff Calculator?
The Debt Payoff Calculator compares the avalanche and snowball STRATEGIES for paying off a list of separate existing debts at their own individual rates -- it never introduces a new loan. This calculator answers a different question: if you rolled all of that debt into ONE new consolidation loan at a single rate, would that actually save money compared to your current payoff pace?
What counts as my "current average interest rate"?
A rough weighted average across whatever debts you're consolidating -- credit cards, personal loans, etc. If your balances and rates vary a lot, weight the average toward whichever balance is largest, since that debt drives most of the interest cost.
Does this account for fees on the new loan?
No -- this compares interest and payment amounts only. Many consolidation loans and balance transfers charge an origination or transfer fee (commonly 3-5% of the amount moved), which would reduce the real savings shown here. Factor any known fee in separately before deciding.
Does consolidating debt hurt my credit score?
It can cause a small, temporary dip -- applying for a new loan involves a hard credit inquiry, and closing old accounts can shorten your average account age and change your credit utilization. Most people see their score recover, and often improve over time, as the new loan is paid down and old high-utilization balances go to zero.
Should I close my old credit cards after consolidating?
Not necessarily. Closing a card removes its credit limit from your total available credit, which can raise your utilization ratio on the remaining cards even though your total debt didn't change. Many people keep old cards open (unused) specifically to preserve that available credit and their account history.
What credit score do I need to qualify for a good consolidation rate?
It varies by lender, but generally a higher score gets meaningfully better rates -- someone with fair or poor credit may not qualify for a rate low enough to make consolidation worthwhile. Check your likely rate with a lender before assuming consolidation will save money.
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