A worked example
Three debts totaling $16,000, currently costing $370 a month combined with roughly $10,059 in projected remaining interest, could instead become one loan at 9% over 5 years — about $332 a month, with total interest dropping to around $3,928. That's over $6,000 saved purely from a lower blended rate.
Frequently asked questions
When does consolidation actually help?
Mainly when the new loan's rate is meaningfully lower than the blended rate across your current debts — otherwise you're often just combining balances without solving the underlying cost problem.
Does a lower monthly payment always mean consolidation is a good idea?
Not necessarily — a longer term can lower the monthly payment while increasing total interest paid. Check both numbers, not just the payment, before deciding.
What about balance transfer cards as an alternative?
A 0% introductory balance transfer can beat a consolidation loan if you can pay off the balance before the promotional period ends — but the rate usually jumps sharply afterward, so the payoff timeline matters.
This calculator provides estimates for general informational purposes only and is not financial advice. Actual consolidation loan terms depend on your credit and lender.