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.

It is the process of combining multiple debts (credit cards, personal loans, and so on) into a single loan with one interest rate, usually a lower one. The goal is to simplify your payments and reduce the total cost of the debt.

Consolidation combines your debts into a new loan on better terms without changing the amounts you owe. Debt settlement (negotiation) means reaching an agreement with your creditors to pay less than the full balance, which can seriously damage your credit score.

Federal student loans have their own consolidation options (Federal Direct Consolidation) that can preserve benefits like loan forgiveness and income-driven repayment plans. Do not combine them with a private personal loan, because you would lose those benefits.