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ID Type of Debt Loan Balance Monthly Payment Interest Rate
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Consolidation loan


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How This Debt Consolidation Calculator Works

This debt consolidation calculator helps you see if combining your debts into one loan could save you money and simplify your finances.

Here’s how it works: Input details about your current debts—credit card balances, personal loans, and their interest rates. 

The calculator crunches these numbers and reveals what a consolidated loan might look like. 

You’ll see an estimate of your new monthly payment, potential interest savings, and how long it might take to pay off your debt. 💳💰

Keep in mind, this calculator is just a starting point. It provides a general idea of what debt consolidation could do for you. 

For a more precise picture, consult a qualified mortgage advisor who can consider your unique situation.

How To Use This Debt Consolidation Calculator?

Using a debt consolidation calculator can simplify your financial planning. 

Here’s how you can get the most accurate results:

  1. List your debts. Grab your latest statements and make a list of all the debts you want to consolidate. This could include credit cards, store cards, personal loans, and overdrafts. 📝
  2. Note down the details:
    • Type of Debt – Identify each debt (e.g., Credit card 1, Credit card 2, Car Loan).
    • Loan Balance – Enter the current balance for each debt.
    • Monthly Payment – Note down the minimum monthly payment for each debt.
    • Interest Rate (APR) – Include the annual percentage rate for each debt.
  3. Fill in Consolidation Loan Information:
    • Loan Amount – Input the total amount you plan to borrow for consolidation.
    • Interest Rate – Enter the interest rate for the consolidation loan.
    • Loan Term – Specify the term of the loan (in years). 📅
    • Cost and Fees – Include any additional costs or fees associated with the consolidation loan.
  4. Click the Calculate button to process the information. The calculator will provide a detailed breakdown, including:
    • APR Comparison – The APR of your existing debts versus the consolidation loan.
    • Time to Payoff – How long it will take to pay off your debts with and without consolidation.
    • Loan Fee/Points – Any fees associated with the consolidation loan.
    • Upfront Cash Flow for Consolidation – The initial cash flow required to start the consolidation.
    • Monthly Payment – Your new monthly payment after consolidation.
    • Total Payments – The total amount you will pay over the life of the loan.
    • Total Interest –The total interest paid over the life of the loan.

Adjust the loan term and interest rate. See how different scenarios affect your monthly payments and total interest paid. 

This is where you find your sweet spot. 🎯

📝Things To Consider

Debt consolidation calculators are powerful tools, but to use them effectively, keep these points in mind:

  • Accuracy is key – The results are only as good as the information you provide. Double-check your figures to ensure reliable estimates.
  • It’s not a crystal ball – The calculator gives estimates based on your input and current market conditions. Actual loan offers may vary depending on factors like your credit score and the lender’s criteria.
  • Your personal information is safe – Our online calculators don’t save or share your personal information. Rest assured, this is for educational purposes only.
  • It’s not an offer – The results aren’t a guarantee or an actual loan offer. They’re meant to give you an idea of what might be possible.
  • It’s a tool, not a decision-maker – The calculator can show potential savings, but it can’t tell you if debt consolidation is the right choice for your situation. Professional advice is invaluable here. 

What Do Your Results Mean?

You’ve entered your numbers and clicked ‘calculate’. Now, you’re staring at a set of results. 

But what do they actually mean? Here’s what the key terms mean and why they matter:

  • APR (Annual Percentage Rate). This is the yearly cost of your loan, including interest and fees. A lower APR on your consolidation loan means you’ll pay LESS in interest over time compared to your existing debts. 📉
  • Time to Payoff. This tells you how long it will take to pay off your loan completely. A longer term can lower YOUR monthly payments but may increase the total interest paid.
  • Loan Fee/Points. These are extra costs you pay upfront when you take out the loan. Understanding these fees helps you see the full cost of consolidating your debts.
  • Upfront Cash Flow for Consolidation. This is the initial amount you need to start the consolidation. It includes any upfront fees. Knowing this helps you prepare for any immediate financial outlay.
  • Monthly Pay. This is your new monthly payment on the consolidated loan. If it’s lower than your current total monthly payments, it can free up cash in your budget, making it easier to manage your finances.
  • Total Payments. This shows the total amount you’ll pay over the life of the loan, including principal and interest. Comparing this to your current debts helps you see if consolidating will save you money.
  • Total Interests. This is the total interest you’ll pay over the loan’s life. Lowering total interest is a key goal of debt consolidation, meaning more of your money goes towards paying down the principal, saving you money over time.

These results will show you if debt consolidation could be your best move. But pause for a moment. ⏸️

Address the root of your debt problems first.🚧

Debt consolidation can manage your debt, but it won’t make it disappear.

If the calculator shows you could save a lot of money or have a more manageable monthly payment, it’s worth talking to a good mortgage advisor about your choices.

Image about the interpretation of results.

Digging Deeper: Debt Consolidation Explained

You’ve got the hang of the calculator – now, let’s uncover the essentials of debt consolidation. 

Knowing the finer points can guide you in deciding if it’s the right step for you.

What is Debt Consolidation? 

Debt consolidation is a financial strategy where you combine multiple debts into a single, new debt. 

The idea is to simplify your finances and potentially SAVE money on interest. 

Instead of juggling multiple payments with different due dates and interest rates, you make one payment to one lender.

Here’s how it works:

  1. You take out a new loan or credit card with a lower interest rate.
  2. You use this new credit to pay off your existing debts.
  3. You’re left with one debt to repay, ideally with a lower interest rate and a single monthly payment.

It’s important to note that debt consolidation doesn’t make your debt disappear. You still owe the same amount, but the terms of repayment have changed. 

The goal is to make your debt MORE manageable and potentially LESS expensive over time.

Ways To Consolidate Your Debt

There are several methods to consolidate debt, each with its own pros and cons:

  1. Balance Transfer Credit Cards. These cards offer a low or 0% interest rate for a promotional period, typically 12-21 months. You transfer your existing credit card balances to this new card. This can be a good option if you can pay off your debt within the promotional period.
  2. Personal Loans. You take out a new loan to pay off your existing debts. Personal loans often have lower interest rates than credit cards, especially if you have a good credit score. They also have fixed repayment terms, which can help with budgeting.
  3. Home Equity Loans or HELOCs. If you’re a homeowner with equity in your property, you might be able to borrow against this equity to consolidate your debts. These loans often have lower interest rates because they’re secured against your home. However, you risk losing your home if you can’t keep up with repayments.
  4. Debt Management Plans. This isn’t technically debt consolidation, but it’s worth mentioning. You work with a credit counselling agency who negotiates with your creditors on your behalf. You make one monthly payment to the agency, who then distributes it to your creditors.
  5. Remortgaging. If you have a mortgage, you might be able to remortgage to release equity from your home to pay off your debts. This can potentially offer lower interest rates, but it increases your mortgage debt and extends the time you’re in debt.

How Much Does It Cost to Consolidate Debt?

The cost of debt consolidation can vary widely depending on the method you choose and your financial situation. 

Here are some potential costs to consider:

  • Interest – This is usually the biggest cost. The interest rate you’re offered will depend on factors like your credit score, income, and the type of consolidation you choose.
  • Fees – Some debt consolidation methods come with fees. For example:
    • Balance transfer cards often charge a fee of 1-5% of the amount transferred.
    • Personal loans might have an origination fee.
    • Home equity loans can involve closing costs.
  • Early repayment charges – If you’re paying off existing loans early, check if there are any penalties for doing so.
  • Longer repayment term – While consolidating might lower your monthly payments, it could extend the time you’re in debt, potentially costing more in interest over the long run.

To get a clear picture of the costs, use the debt consolidation calculator and then factor in any additional fees. 

Compare this to the cost of keeping your debts as they are. Remember, the goal is to save money overall, not just reduce your monthly payment. 💡

The Pros & Cons of Debt Consolidation

Like any financial decision, debt consolidation has its upsides and downsides. 

Let’s weigh them up:


  • Managing just one payment instead of multiple ones.
  • Potentially saving money by securing a lower interest rate.
  • Lowering monthly payments, freeing up cash for other expenses.
  • Having a clear end date for being debt-free with a fixed repayment term.
  • Boosting credit score by making timely payments and reducing credit utilisation.


  • Risking more debt if continuing to use credit cards after consolidating.
  • Possibly being in debt for a longer period with lower monthly payments.
  • Risking losing an asset if using a secured loan like a home equity loan and failing to make payments.
  • Facing fees that could offset any savings from consolidation.
  • Not addressing overspending habits, which could lead to future debt problems.

How To Pay Debts Early?

If you’re considering debt consolidation, you’re already on the right track to better financial health. But why stop there?

Paying off your debts early can save you even more money in interest and free you from debt sooner. 

Here are some strategies to consider:

  1. Make extra payments – Any amount you can pay above your minimum payment goes directly to reducing your principal balance.
  2. Use windfalls wisely – Put unexpected money (like tax refunds or work bonuses) towards your debt.
  3. The snowball method – Focus on paying off your smallest debt first while making minimum payments on others. Once it’s paid off, move to the next smallest. This can provide psychological wins that keep you motivated.
  4. The avalanche method – Focus on the debt with the highest interest rate first. This saves you the most money in interest over time.
  5. Round up payments – If your monthly payment is £220, round it up to £250. These small increases can make a big difference over time.
  6. Bi-weekly payments – Instead of one monthly payment, make half the payment every two weeks. This results in an extra full payment each year.
  7. Cut expenses and redirect savings  – Look for areas in your budget where you can cut back and put that money towards debt. ✂️
  8. Increase your income – Consider a side hustle or asking for a raise at work. Use the extra income to pay down debt faster.

Remember, even small extra payments can make a BIG difference over time. 

Use your debt consolidation calculator to see how much you could save by paying extra each month. 🧮💡

When Should You Consolidate Debts?

Debt consolidation can be a powerful tool, but it’s not right for everyone in every situation. 

Here are some scenarios where consolidation might make sense:

  1. Your credit score has improved. If your credit score is better now than when you took out your original debts, you might qualify for a lower interest rate.
  2. You’re struggling to keep track. If you’re finding it hard to manage multiple payment due dates, consolidation can simplify things.
  3. You can secure a lower interest rate. If you can reduce your overall interest rate, consolidation could save you money.
  4. You’re committed to not taking on more debt. Consolidation works best when paired with a commitment to change spending habits.
  5. Your debts are less than 50% of your income. If your debts are more than half your income, you might need to consider more aggressive debt relief options.
  6. You have a stable income. You need to be confident you can meet the new consolidated payment each month.
  7. The maths works out. Use the debt consolidation calculator to ensure that consolidation will actually save you money in the long run.

However, consolidation might not be the best choice if:

  • Your debt is small and you can pay it off within 6 months to a year. 😊📅
  • Your spending habits haven’t changed and you’re likely to rack up more debt. 
  • The fees for consolidation would outweigh any potential savings.
  • You’re close to paying off your current debts anyway. 🏁

The Bottom Line

Debt consolidation can be a useful tool for managing your finances and potentially saving money. 

The debt consolidation calculator is a great starting point to see if it might work for you. 

It can show you potential savings and give you a clearer picture of what your consolidated debt might look like.

However, remember that the calculator provides estimates based on the information you input. 

Your actual options may vary depending on factors like your credit score, income, and the specific terms offered by lenders.

If the calculator shows promising results, your next step should be to shop around for consolidation offers. 👇

Compare rates and terms from different lenders, and read the fine print carefully. 

Consider speaking with a qualified mortgage advisor who can provide personalised advice based on your unique situation.

Need a good broker? Get in touch. We’ll connect you with a good whole-of-market mortgage broker who can help you GET the best possible deal on your debt consolidation loan.


Can I consolidate my debts even with a bad credit score?

Yes, it’s possible to consolidate debts with a bad credit score, but your options might be more limited. 

You may face higher interest rates or struggle to qualify for certain types of consolidation loans. 

Some options for those with poor credit include secured loans (like a home equity loan if you’re a homeowner), working with a credit counselling agency, or exploring peer-to-peer lending platforms. 

Remember to use the debt consolidation calculator to ensure that consolidation will actually save you money, even with a higher interest rate.

Can debt consolidation hurt my credit score?

In the short term, applying for a debt consolidation loan or credit card can cause a small, temporary dip in your credit score due to the hard inquiry on your credit report. 

However, in the long run, debt consolidation can potentially improve your credit score if it helps you make on-time payments and reduce your credit utilisation ratio. 

The key is to make your payments on time and avoid taking on new debt.

What should my credit score be for debt consolidation?

While there’s no set minimum credit score for debt consolidation, generally, the higher your score, the better terms you’ll be offered. 

Many lenders look for a score of at least 650 for unsecured debt consolidation loans, though some may work with scores as low as 580. 

For the best rates, aim for a score of 720 or higher. Remember, your credit score is just one factor lenders consider. 

They’ll also look at your income, existing debts, and overall financial situation. 

>> More about What Credit Score Do I Need For a Mortgage?

What is the average interest rate on a debt consolidation loan?

Interest rates on debt consolidation loans can vary widely based on factors like your credit score, income, and the amount you’re borrowing.

As of 2024 in the UK, average rates typically range from about 5% to 20% APR. 

Those with excellent credit might see rates on the lower end of this range, while those with poor credit might face higher rates. It’s important to use the debt consolidation calculator to compare these rates with your current debts. 

Even if the rate isn’t much lower, consolidation might still be beneficial if it simplifies your payments or provides a fixed repayment term. 

Always shop around and compare offers from multiple lenders to find the best rate for your situation.

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