Is debt consolidation a good idea?

Usually yes IF: you get a lower overall rate, you stop using the cards, and you don't extend the term too long. Not if you'll rack up new card debt.

Personal loan or balance transfer?

Balance transfer: best if you can pay off within 0% period (12-30 months). Personal loan: better for larger amounts or if you need more time to pay off.

Will consolidation hurt my credit score?

Short term: small dip from the new account application. Long term: usually improves your score as you pay down debt and improve utilization ratio.

Debt Consolidation Calculator

Calculator

Combine multiple credit card debts into one manageable payment

Free to useNo data storedAI insightsUpdated: February 2026

Juggling multiple credit cards? Debt consolidation combines them into one payment, often at a lower rate. But is it right for you? This calculator compares the numbers.

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Real-World Examples

3-Card Consolidation

Card 1: $3,000 at 20%. Card 2: $5,000 at 22%. Card 3: $2,000 at 19%. Consolidate to 12% personal loan over 36 months.

Inputs:

card1Balance:3,000card1Rate:20card2Balance:5,000card2Rate:22card3Balance:2,000card3Rate:19consolidationRate:12consolidationTerm:36

Current: $323/month combined, $3,892 interest over 36 months. Consolidated: $332/month, $1,968 interest. Saves $1,924!

Frequently Asked Questions

Glossary

Debt Consolidation

Combining multiple debts into a single loan with one payment.

Weighted Average Rate

The combined interest rate across all debts based on their balances.

Secured vs Unsecured

Secured loans (using your home/car) have lower rates but more risk.

Related Tools

Balance Transfer

0% balance transfer option

Payoff Calculator

Plan individual card payoffs

Interest Calculator

Calculate individual card interest

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026