Debt Consolidation Calculator

When you have high-APR debt (credit cards at 20%+, payday loans, store cards) and good-enough credit to qualify for a personal loan at substantially lower APR (8%-15%). The math works if your weighted average current rate is at least 3-5% above the consolidation rate AND you can commit to not running up the cards again. Otherwise it just buys time before bigger problems.

In 2026: excellent credit (740+) qualifies for 7%-12% APRs from lenders like SoFi, LightStream, and Marcus. Good credit (670-739) typically gets 11%-19%. Fair credit (580-669) gets 18%-29% - often not much better than credit cards. Below 580 credit, consolidation rarely improves matters; consider credit counseling instead. Origination fees of 1%-8% effectively raise the rate by 0.5%-3%.

Often yes for credit-card debt under $10K. A 0% intro APR balance transfer card (typically 15-21 months, 3%-5% transfer fee) beats a personal loan if you can pay off the balance during the promo period. Beyond 21 months or for $15K+ of debt, a fixed-rate personal loan usually wins on certainty and predictable payoff date.

Short-term: small temporary dip (5-10 points) from the hard inquiry and new account. Medium-term: credit usually IMPROVES because installment loans count differently than revolving credit, and paying down credit card balances dramatically improves credit utilization (the 2nd-biggest FICO factor). Long-term boost: 20-50 points within 12 months if you keep the cards paid off and don't rack them up again.