Personal Debt Consolidation Calculator

It’s relatively easy to get overwhelmed with multiple credit card balances, high-interest personal loans, monthly bills, and other types of debt. Watching monthly salaries evaporate after paying all those bills can leave hard-working people deflated. A debt consolidation calculator can help you take control of your financial situation to find relief. You can crunch your existing outstanding debt figures and find a way back to improved financial health and wellness.

By typing in information that includes your existing balances, interest rates, and repayment terms, you’ll have a clear idea of where your money is going each month. After using a debt calculator to determine the potential benefits of a debt consolidation solution, you will be able to make an informed decision.  

How Does a Debt Consolidation Calculator Work

It’s important to understand that a debt consolidation calculator allows users to adjust existing interest rates and terms to envision how different debt consolidation solutions can help alter your existing repayment plans. After inputting balances and interest rates, you’ll be able to change certain settings to find your debt consolidation sweet spot. These are ways people leverage this resource to identify a suitable interest rate and favorable repayment terms.

• Credit Card Debt: Enter the credit card balance and interest rate for each account. Leave the minimum payment box checked to get an accurate estimate of the potential maximum total payments.
• Auto Loan Debt: Repeat this process with the Auto Loan tab but include your actual monthly minimum payments. This will prompt the debt consolidation calculator to generate the number of remaining installments.
• Other Debts: Repeat the same process for the other installment loan debt. The tabs include personal loans, real estate, and others.

After entering these metrics, you’ll notice that the “New Consolidation Loan” field has populated. Based on the figures you included, this section indicates the total consolidation loan balance, monthly installment, interest rate, and the number of payments.

Below this section is a graph that provides a monthly payment comparison. You can view the difference between your existing monthly payments versus your new monthly payment if you were to consolidate your debt. It’s not uncommon for monthly payments to be cut down considerably, sometimes by early 50 percent. There is also a “Time to Pay Off Debt” tab that shows you a comparison of your estimated timeframe to be debt free versus your potential timeframe to resolve these balances if you chose to consolidate your debt with a Peach State debt consolidation solution such as a Home Equity Loan, Personal Loan, or Low Rate Credit Card.

But the debt consolidation calculator also lets users take their strategic planning much further. Take some time and adjust the Term tab numbers inside the New consolidated loan section. This represents the number of installments you elect. You’ll notice that fewer installments result in higher payments. But in the comparison graph, borrowers also see reduced interest expenses. The opposite holds true of longer repayment terms. Borrowers enjoy more manageable monthly installments and experience greater interest costs over the life of the loan. You may also notice that changing the interest rate affects the numbers as well.

The greatest benefit of using this debt consolidation calculator is finding that perfect balance of monthly installments, lower interest, and knowing when you’ll pay off those stressful balances.

What Debt Consolidation Loan Options Are Available?

If after using the calculator you determine that a consolidation loan would serve your best interests, the next step involves choosing a suitable option. “Debt consolidation” is something of a catchall term that refers to a variety of products. One common denominator between them is they all allow borrowers to pay off other debts. The best consolidation loans also provide low-interest rates, charge only nominal fees, and offer flexible repayment terms. These are popular options used to consolidate debt.

• Home Equity Loans: By using the equity in your home as collateral, borrowers typically get approved for the lowest possible interest rates. These secured loans are usually issued as fixed-rate, lump-sum loans. Lenders may deposit the funds in an account or make direct payments to creditors.
• Personal Loans: Because personal loans are not necessarily secured by assets, interest rates are generally a tad higher. But some local lenders offer competitive rates and favorable terms. If debt consolidation and financial freedom are your goals, personal loans can help you achieve them.
• Low-Interest Credit Cards: It’s not uncommon for consumers to be strapped with multiple high-interest credit cards. If you have been consistently making on-time payments, it’s likely your credit score has improved. A solid credit score and repayment history could open the door to a low-rate credit card. The goal is to select one that offers fee free balance transfers.

Additional Free Debt Consolidation Resources:

If you are considering a debt consolidation loan, check out our additional resources to help you alleviate your debt and decide the best way to make it happen.

• For more debt consolidation calculator tips and to explore which debt consolidation solution is best for your needs, check out our Debt Consolidation: Expectations vs. Reality Guide. Download your copy now and get informed so you can get the relief and results you deserve!
• Our How to Get Out of Debt Fast Roadmap & Template teaches you how to get out of debt using the Debt Snowball Method. Download this free resource today and take the first step toward financial freedom!