Debt Consolidation Calculator 2026
Enter your current debts and a potential consolidation loan rate. See side-by-side totals to decide if consolidating saves you money.
Debt consolidation makes sense when the new loan rate is lower than your weighted average interest rate across all debts. To find your weighted average rate, multiply each balance by its rate, sum them, then divide by total debt. If your $25,000 in debts averages 19%, a consolidation loan at 11% saves $2,000+ per year in interest.
Debt Consolidation Strategies Compared
Personal loan: Fixed rate, fixed term. Best for amounts over $5,000 where you need more than 21 months. Apply at credit unions first — they often have rates 2-5% lower than banks for members.
0% balance transfer card: No interest for 12-21 months. Best for under $15,000 if you can pay it off within the promo period. Transfer fee is typically 3-5% of the amount. After the promo period ends, the rate jumps to 20-30%+.
Home equity loan / HELOC: Lowest rates (prime + 0-2%), but your home is collateral. Best for large amounts ($20,000+) if you have equity. Risk: if you default, you lose your home.
Debt management plan (nonprofit): Credit counseling agencies can negotiate rates down to 5-9%. No loan needed — they handle payments. Takes 3-5 years. Won't hurt credit as much as settlement.