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 be debt free or how much you need to pay each month in order to clear your debts within a certain time frame.
How much can you save by consolidating debts?
I know how much I can pay towards my debt in a month. How long will it take to get debt free?
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.
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.