Simulate rolling multiple high-interest debts into a single fixed-rate loan. See your new monthly payment and exact cash flow impact in real time.
● Your Current Debts
Step 1
Debt NameBalance ($)Rate (%)Monthly Payment ($)
● New Consolidation Loan
Step 2
⚠
Heads up: your new monthly payment is higher than your current minimums. This likely means you will pay off the debt faster and save on total interest, but your monthly cash flow will be tighter. Make sure the new payment fits your budget before committing.
Current Scenario
Total Monthly Payment
--
Total Outstanding Balance
--
Blended Interest Rate
--
Consolidation Scenario
New Monthly Payment
--
Total Loan Amount (incl. fee)
--
Total Interest on New Loan
--
Monthly Cash Flow Impact
--
Enter your debts and loan terms above to see your impact.
Total Cost of New Loan
--
Origination Fee Amount
--
Advertisement
Key Terms Explained
Debt Consolidation
The process of combining multiple debts into a single new loan, ideally at a lower interest rate, to simplify payments and reduce total interest paid.
Amortization
The process of paying off a loan through scheduled, equal monthly payments. Each payment covers interest first, with the remainder reducing the principal balance.
Origination Fee
An upfront fee charged by a lender to process a new loan, typically 1% to 8% of the loan amount. It is added to the principal you repay and affects the true cost of borrowing.
Unsecured Loan
A personal loan not backed by collateral such as a home or car. Because the lender has no asset to claim if you default, unsecured loans typically carry higher interest rates than secured loans.
Blended Interest Rate
The weighted average rate across all your current debts, weighted by each debt's balance. Use it to compare against the consolidation loan rate to see if you are genuinely getting a better deal.
Credit Utilization Ratio
The percentage of your available revolving credit (credit cards) that you are currently using. Paying down card balances via consolidation can significantly lower this ratio and improve your credit score.
Debt-to-Income (DTI) Ratio
Your total monthly debt payments divided by your gross monthly income. Lenders use DTI to assess whether you can afford additional debt. Consolidation may lower your DTI if the new monthly payment is smaller.
The Complete Guide to Debt Consolidation Loans
If you are juggling three, four, or more monthly debt payments at high interest rates, the mental overhead alone is exhausting - and the interest is expensive. A consolidation loan trades all of those payments for a single, predictable monthly installment at a fixed rate. But whether it is the right move depends entirely on the math: the new rate, the loan term, and the origination fee all affect whether you actually save money. This evaluator runs that math instantly so you can make an informed decision before you ever apply.
How to Use This Evaluator
Start by filling in each of your existing debts in the "Current Debts" grid. Enter the debt name (Credit Card A, Auto Loan, Medical Bill), the current balance, the annual interest rate, and what you pay each month today. Click "Add Another Debt" to include as many debts as you like. The tool supports unlimited rows.
Next, fill in the "New Consolidation Loan" panel. Enter the interest rate a lender has quoted you (or a rate you are researching), select the loan term in months, and enter the origination fee percentage. Results update in real time as you type - no submit button needed.
The comparison cards show your current total monthly payment against the new consolidated payment. The cash flow impact below the cards tells you exactly how much you save or spend per month, color-coded green for savings and red for a higher payment. If the new payment is higher than your current minimums, a warning badge appears explaining the trade-off.
When Consolidation Makes Sense
Debt consolidation is most powerful when your new loan rate is meaningfully below your blended rate (the weighted average of all your current rates), and when the loan term is close to when you would have paid off the debts anyway. The sweet spot is a lower rate, a similar term, and a small or zero origination fee.
It is less compelling when the loan term is much longer than your current payoff timeline - because stretching the debt over more years can cost more in total interest even at a lower rate. Always compare total cost, not just monthly payment.
The Origination Fee Trade-Off
Many personal loans and debt consolidation products charge an origination fee of 1% to 8% of the loan amount. This tool adds the fee to your principal so the "Total Loan Amount" and all downstream calculations reflect the real cost of borrowing. A 3% fee on a $20,000 loan is $600 upfront - make sure the interest savings over the loan term exceed that number before signing.
What Happens to Your Credit Score
Applying for a consolidation loan triggers a hard inquiry, which may temporarily lower your credit score by a few points. However, paying off revolving balances (credit cards) with an installment loan reduces your credit utilization ratio, often producing a net positive effect on your score within a few months. The most impactful factor is consistently paying the new loan on time every month.
Frequently Asked Questions
In the short term, applying for a consolidation loan triggers a hard inquiry that may temporarily lower your score by a few points. However, consolidating revolving credit card balances into an installment loan can improve your credit utilization ratio, which often benefits your score over the medium and long term. Paying on time consistently after consolidating is the most powerful factor.
Generally, no. Closing credit card accounts reduces your total available credit, which increases your credit utilization ratio and can lower your score. It also shortens your average account age. Unless you have a disciplined reason to prevent yourself from accumulating new debt, it is usually better to keep the cards open with a zero balance.
An origination fee is an upfront charge a lender deducts from your loan proceeds, typically ranging from 1% to 8% of the loan amount. It is worth it if the interest savings over the loan term outweigh the fee. This evaluator adds the origination fee to your principal so you can see whether the total cost of the new loan is still lower than continuing to pay your current debts.
No. Debt consolidation means taking out a new loan to pay off existing debts in full, leaving you with one monthly payment. You owe the same total amount, just to a new lender at a new rate. Debt settlement involves negotiating with creditors to accept less than you owe, which severely damages your credit score and may result in a tax liability on the forgiven amount.
A blended interest rate is the weighted average of multiple debt interest rates, weighted by each debt's balance. It tells you the effective overall rate you are paying across all your debts right now. If the consolidation loan rate is lower than your blended rate, consolidation will reduce your total interest cost assuming the loan term is comparable.
This tool is for educational and estimation purposes only. Results are not financial advice. Loan terms, qualification, and fees vary by lender. Consult a licensed financial advisor before making borrowing decisions.