Debt Consolidation Calculator-How much to save by consolidating debts
Debt Consolidation Calculator helps you to determine how much you can save by consolidating debts into a single monthly payment. You can also calculate how long it'll take you to get debt free or how much you need to pay each month in order to clear your debts within a certain time frame.
What is debt consolidation?
Debt Consolidation is a way by which you can combine all your debt payments into one easy monthly installment. This can be done by enrolling in a consolidation program or taking out a debt consolidation loan (personal or home equity loan) to pay back the dues. The consolidation loan is then paid off through installments payable on a monthly basis.
How does the Debt Consolidation Calculator work?
Debt Consolidation Calculators work in 2 ways:
- By accepting monthly payment: Here, you need to put in the monthly payment you can afford to pay on your debts/bills. You need to select your state as well. The Debt Consolidation Calculator will then ask you for other inputs such as interest rates, current balance, and monthly payment on your credit cards/loans. Just enter the values and move on to the next step.
The next step is where the Debt Consolidation Calculator will need you to choose between a home equity loan and a personal loan. Select the one you'll use to consolidate debts and enter the interest rate, fees etc. The Debt Consolidation Calculator will figure out when you'll be able to clear your debts and how much you'll save by consolidation.
- By accepting time length: This is where you need to enter time length of the debt consolidation loan. Then, choose the state where you live. In the next few steps, the Debt Consolidation Calculator will need you to enter values such as interest rates, current balance, monthly payment and other details on your debts. On doing so, you'll get a comparison of when you can pay back your debts and how much you'll save with debt consolidation.