Would debt consolidation lower your cost?
Compare the same balances on both paths. A lower payment is useful only when the full cost and timeline also make sense.
Consolidation can save money and still keep you in debt longer.
- The rate, term, fee, and payment all matter.
- Using paid-off cards again can leave you with two layers of debt.
Compare current debts with a new loan
Enter up to six unsecured debts. Leave a whole row blank if you do not need it.
What the tested example shows
Modeled interest plus fee on the proposed loan, compared with about $4,852 of interest on the current fixed-payment path.
The proposed payment is about $333 instead of $425, but payoff takes 48 months instead of 43. The example saves modeled cost and adds 5 months.
For a deducted 5% fee, required gross principal = $12,000 ÷ 0.95 = about $12,631.58.
Use a two-part decision rule
It may fit if
- Modeled total cost falls.
- The new payment fits every month.
- You can stop adding card balances.
Pause if
- The fee erases the rate savings.
- The term keeps you in debt longer than you accept.
- Paid-off cards would fill again.
Consolidation changes the container. It does not reduce the amount you owe or fix a monthly shortfall by itself.
Method, limits, and sources
Each current debt grows monthly at APR divided by 12, then the fixed entered payment applies. The simulation stops at payoff or 600 months. A payment must reduce the opening balance. The proposed loan targets the same balances. A deducted fee is grossed up so net proceeds cover them. Debt-consolidation method and calculator platform: 2026-08-28.4.
The model holds current payments and rates fixed. It assumes no new card charges, rate changes, late fees, or penalties. It does not predict a score or lender decision. It cannot model the risk that you rebuild card balances after consolidation.
- CFPB guidance on debt consolidation — checked August 28, 2026.
- CFPB comparison of debt options — checked August 28, 2026.
- FTC guidance on getting out of debt — checked August 28, 2026.