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Compare personal loans, balance transfers, home equity loans, and debt management plans side-by-side. Find the best option to simplify your debt, lower interest rates, and save thousands.
Payoff Time
600 months
50.0 years
Total Interest
$6,577,820,172,598
Total Cost
$6,577,820,422,598
Available Equity: $2,000,000
Total Debt
$250,000
3 debts
Current Payment
$7,900
per month
Avg Interest
27.6%
weighted avg
Best Savings
$6,577,820,127,184
vs current
Credit Score
700
Good
Monthly Payment
$8,304
↑ $404 vs current
Interest Rate
12.0%
vs 27.6% current
Payoff Time
36 mo
3.0 years
Total Interest
$50,929
Fees
$2,000
Total Savings
↓ $6,577,820,121,669
Monthly Payment
$7,900
Interest Rate
0.0%
vs 27.6% current
Payoff Time
38 mo
3.2 years
Total Interest
$43,914
Fees
$1,500
Total Savings
↓ $6,577,820,127,184
Monthly Payment
$5,129
↓ $2,771 vs current
Interest Rate
8.5%
vs 27.6% current
Payoff Time
60 mo
5.0 years
Total Interest
$62,748
Fees
$5,000
Total Savings
↓ $6,577,820,109,850
Monthly Payment
$8,400
↑ $500 vs current
Interest Rate
8.0%
vs 27.6% current
Payoff Time
36 mo
3.0 years
Total Interest
$31,728
Fees
$18,000
Total Savings
↓ $6,577,820,122,870
Recommendation
Balance Transfer Card is your best option, saving you $6,577,820,127,184 in interest compared to your current situation. Your monthly payment would be $7,900 and you'll be debt-free in 38 months (3.2 years).
Typical range: 10-18% based on credit score
Pros:
Cons:
Often 0% for promotional period
Typically 2-3% of balance
Pros:
Cons:
Typically 8-10% (lower than unsecured)
Available Equity Check:
$2,000,000
Pros:
Cons:
Credit counselors negotiate lower rates
Typical range: $300-$1000/month
Pros:
Cons:
| Feature | Current | Personal Loan | Balance Transfer Card | Home Equity Loan | Debt Management Plan |
|---|---|---|---|---|---|
| Monthly Payment | $7,900 | $8,304 | $7,900 | $5,129 | $8,400 |
| Interest Rate | 27.6% | 12.0% | 0.0% | 8.5% | 8.0% |
| Payoff Time | 600 mo | 36 mo | 38 mo | 60 mo | 36 mo |
| Total Interest | $6,577,820,172,598 | $50,929 | $43,914 | $62,748 | $31,728 |
| Fees | $0 | $2,000 | $1,500 | $5,000 | $18,000 |
| Total Cost | $6,577,820,422,598 | $300,929 | $295,414 | $312,748 | $299,728 |
| Savings vs Current | - | ↓ $6,577,820,121,669 | ↓ $6,577,820,127,184 | ↓ $6,577,820,109,850 | ↓ $6,577,820,122,870 |
Get your free credit report to understand your eligibility for different options.
Shop around with multiple lenders to get the best rates and terms.
Understand all fees, penalties, and terms before signing any agreement.
Ensure you can afford the new monthly payment consistently.
Don't accumulate new debt after consolidating. Change spending habits.
Speak with a certified credit counselor for personalized advice.
•Consolidation is not a cure-all: It simplifies payments but doesn't reduce the principal amount owed.
•Avoid secured loans if possible: Home equity loans put your home at risk if you can't make payments.
•Watch out for fees: Processing fees, balance transfer fees, and closing costs can add up quickly.
•Don't close old accounts immediately: This can negatively impact your credit score.
•Beware of scams: Work only with reputable lenders and credit counseling agencies.
•Address the root cause: Fix spending habits to avoid falling back into debt.
A Debt Consolidation Calculator is a comprehensive financial tool that helps you compare different methods of combining multiple debts into a single payment. Instead of juggling several credit cards, personal loans, medical bills, and other debts with varying interest rates and due dates, this calculator shows you how consolidation can simplify your finances and potentially save you thousands in interest.
The calculator analyzes four main consolidation options: Personal Loans (unsecured loans with fixed rates), Balance Transfer Cards (0% promotional APR periods), Home Equity Loans (secured by your home for lowest rates), and Debt Management Plans (arranged through credit counseling agencies). For each option, it calculates your monthly payment, total interest, fees, payoff timeline, and potential savings compared to your current situation.
Our advanced calculator goes beyond basic comparisons by showing eligibility requirements based on your credit score, calculating available home equity for secured loans, providing side-by-side visual comparisons, highlighting the best option for your situation, and offering detailed breakdowns of costs and savings. Whether you have ₹50,000 or ₹5,00,000 in debt, this tool helps you make an informed decision about the best consolidation strategy.
💰 Personal Loan Settings
💳 Balance Transfer Settings
🏠 Home Equity Settings
📋 Debt Management Plan
Click "Show Comparison" to see all four consolidation options side-by-side:
The calculator provides a personalized recommendation explaining:
How it works: Take out an unsecured personal loan to pay off all existing debts. You'll have one fixed monthly payment at a potentially lower interest rate.
Key Features:
✅ Pros:
❌ Cons:
Best For:
Good credit (650+), want predictable payments, no home equity available
How it works: Transfer high-interest debt to a credit card with 0% APR promotional period. Pay off debt interest-free during promo, then regular rate applies.
Key Features:
✅ Pros:
❌ Cons:
Best For:
Excellent credit (700+), can pay off during 0% period, moderate debt amounts
How it works: Borrow against your home's equity to pay off debts. Your home serves as collateral, allowing for lower interest rates but putting your home at risk.
Key Features:
✅ Pros:
❌ Cons:
Best For:
Homeowners with 20%+ equity, large debt amounts, stable income, disciplined borrowers
How it works: Credit counseling agency negotiates with creditors for lower rates and waived fees. You make one monthly payment to the agency, which distributes to creditors.
Key Features:
✅ Pros:
❌ Cons:
Best For:
Poor credit, need professional help, can't qualify for loans, overwhelmed by debt
Consolidate high-interest credit card debt (18-36% APR) into a single loan with lower rates (8-18%), saving thousands in interest over time.
One monthly payment instead of juggling multiple due dates, amounts, and creditors. Reduces missed payments and late fees.
Lower interest means more of your payment goes to principal. Clear debt months or years faster than minimum payments alone.
Consistent on-time payments, lower credit utilization, and reduced debt-to-income ratio can boost your credit score by 50-100 points.
Less complexity, clear payoff timeline, and manageable payments reduce anxiety and improve mental health and quality of life.
Know exactly when you'll be debt-free. Fixed terms (unlike revolving credit) provide a clear end date and motivation to stay on track.
Debt consolidation is the process of combining multiple debts into a single loan or payment plan. Instead of managing several credit cards, personal loans, and other debts with different interest rates and due dates, you take out one new loan to pay off all existing debts. This leaves you with just one monthly payment, ideally at a lower interest rate. Common consolidation methods include personal loans, balance transfer credit cards, home equity loans, and debt management plans arranged through credit counseling agencies.
Debt consolidation can temporarily lower your credit score by 5-10 points due to the hard inquiry when applying for a new loan and the new account opening. However, if you make consistent on-time payments and reduce your overall credit utilization, your score typically improves within 3-6 months. The long-term impact is usually positive as you demonstrate responsible credit management. Avoid closing old credit card accounts after consolidation, as this can reduce your available credit and hurt your score.
Credit score requirements vary by consolidation method: Personal loans typically require 650+ (best rates at 720+), balance transfer cards need 700+ (excellent credit 750+), home equity loans require 620+ minimum, and debt management plans have no minimum credit score requirement. Higher credit scores qualify for lower interest rates, making consolidation more beneficial. If your score is below 650, consider a debt management plan or work on improving your credit before consolidating.
Debt consolidation and debt settlement are different strategies. Consolidation combines multiple debts into one loan at a lower interest rate - you pay the full amount owed, maintain good credit standing, and simplify payments. Debt settlement involves negotiating with creditors to pay less than the full balance, which can severely damage your credit score (drops 100+ points), stays on your credit report for 7 years, may have tax consequences (forgiven debt is taxable income), and can result in lawsuits. Consolidation is suitable for those who can afford to repay their debts, while settlement is typically considered only in severe financial hardship situations. Consult with a certified financial counselor to determine which approach fits your specific situation.
Home equity loans offer the lowest interest rates (8-10%) but come with significant risk - your home becomes collateral. Only consider this option if: 1) You have sufficient equity (20%+ recommended), 2) You're confident in your ability to make payments consistently, 3) You've addressed the spending habits that caused the debt, 4) The interest savings are substantial, and 5) You understand you're converting unsecured debt to secured debt. Never use home equity for frivolous debt or if your income is unstable.
Personal loans offer fixed interest rates (10-18%), fixed monthly payments, and terms of 12-60 months. They're predictable and work for any debt amount. Balance transfer cards offer 0% APR promotional periods (6-18 months) but charge 2-3% transfer fees and revert to high rates (18-30%) after the promo ends. Balance transfers are best if you can pay off the debt during the 0% period. Personal loans are better for larger debts or longer payoff timelines. Compare both options using our calculator.
Yes, but options are limited and rates will be higher. With bad credit (below 650): 1) Debt Management Plans work with any credit score and negotiate lower rates (6-10%), 2) Some lenders offer bad credit personal loans at 18-36% APR, 3) Credit unions may offer better rates to members, 4) Secured loans use collateral for lower rates but risk losing assets, 5) Co-signers can help qualify for better rates. Avoid predatory lenders charging excessive fees. Consider working with a nonprofit credit counselor to explore all options.
Savings depend on your current interest rates and the consolidation rate you qualify for. Example: ₹2,50,000 in credit card debt at 24% APR costs ₹1,20,000+ in interest over 5 years. Consolidating to a 12% personal loan saves ₹60,000+ in interest. Use our calculator to see your exact savings. Typical savings range from 30-50% of interest costs. However, extending the loan term can reduce monthly payments but increase total interest paid. Always compare total cost, not just monthly payment.
Common fees include: Personal loans - origination fees (1-8% of loan amount), prepayment penalties (rare), late payment fees. Balance transfers - transfer fees (2-3% of balance), annual fees (₹0-5,000). Home equity loans - closing costs (2-5% of loan amount), appraisal fees (₹5,000-15,000), title search fees. Debt management plans - setup fees (₹0-2,000), monthly service fees (₹300-1,000). Always calculate total fees when comparing options. Some fees can be negotiated or waived.
Timeline varies by method: Personal loan approval takes 1-7 days, funding in 1-5 business days. Balance transfer approval is instant to 2 weeks, transfer completes in 2-3 weeks. Home equity loans take 30-45 days due to appraisal and underwriting. Debt management plans start in 1-2 weeks after counseling. Once consolidated, payoff time depends on your loan term - typically 12-60 months for personal loans, 36-60 months for DMPs, 60-120 months for home equity loans.
Not necessarily. While longer terms reduce monthly payments, they often increase total interest paid. Example: ₹1,00,000 at 12% APR - 36 months = ₹3,322/month, ₹19,592 total interest. Same loan at 60 months = ₹2,224/month, ₹33,440 total interest. You pay ₹13,848 MORE interest for the lower payment. Only extend the term if you absolutely need lower payments. If possible, choose the shortest term you can afford to minimize total cost.
After using a consolidation loan to pay off credit cards, the cards are paid to zero balance but accounts remain open. DO NOT close them immediately - this reduces your available credit and can hurt your credit score. Keep 1-2 cards open for emergencies and to maintain credit history. Consider: 1) Cutting up cards to avoid temptation, 2) Removing cards from online shopping accounts, 3) Setting very low credit limits, 4) Using one card monthly for small purchases and paying in full. The key is preventing new debt accumulation.
A Debt Management Plan (DMP) is one type of debt consolidation. Through a credit counseling agency, they negotiate with creditors for lower interest rates (typically 6-10%) and waived fees. You make one monthly payment to the agency, which distributes it to creditors. Unlike loans, DMPs don't require good credit or collateral. However, you must close credit card accounts enrolled in the plan, and there are monthly service fees (₹300-1,000). DMPs work best for those with poor credit who need professional help managing debt.
Compare offers from at least 3-5 lenders including banks, credit unions, and online lenders. Rates can vary by 5-10 percentage points. Use prequalification to check rates without hurting your credit score.
A lower monthly payment isn't always better if it extends your loan term. Calculate total interest + fees over the life of the loan. Sometimes a higher payment saves more money overall.
After consolidating, resist using freed-up credit cards. 70% of people who consolidate fall back into debt. Consider closing accounts, cutting up cards, or setting very low credit limits.
Consolidation treats symptoms, not causes. Create a realistic budget, track all spending, identify problem areas, and change habits. Without this, you'll likely accumulate new debt.
Even ₹1,000-2,000 extra per month can save thousands in interest and shorten your payoff time by months or years. Apply windfalls (bonuses, tax refunds) directly to principal.
Nonprofit credit counseling agencies offer free consultations. They can review your situation, explain all options, negotiate with creditors, and help you create a realistic plan.
⚠️ Important: Always verify credentials of any debt consolidation company or counselor. Legitimate organizations are nonprofit, don't charge upfront fees, and are accredited by NFCC or similar organizations.
You still owe the full amount. Consolidation reorganizes debt, it doesn't make it disappear. You must commit to not accumulating new debt and making consistent payments.
Using your home as collateral converts unsecured debt to secured debt. If you can't make payments, you could lose your home. Only use this option if you're absolutely confident in your ability to pay.
Legitimate companies don't charge upfront fees, guarantee debt elimination, or promise unrealistic results. Avoid companies that pressure you to sign immediately or ask for payment before providing services.
Applying for consolidation loans causes hard inquiries (5-10 point drop). Opening new accounts and closing old ones can temporarily lower your score. However, responsible use improves it long-term.
If overspending caused your debt, consolidation alone won't help. You must change spending habits, create a budget, and address the underlying financial behaviors that led to debt accumulation.
While longer loan terms reduce monthly payments, they significantly increase total interest paid. A 60-month loan can cost 50-100% more in interest than a 36-month loan at the same rate.
Get your free credit report from AnnualCreditReport.com. Check your score on Credit Karma or through your bank. Know your score before applying to understand which options you qualify for.
Use our calculator results as a baseline. Get prequalified offers from 3-5 lenders (banks, credit unions, online lenders). Compare actual rates, terms, and fees. Prequalification doesn't hurt your credit.
Review the fine print: origination fees, prepayment penalties, late fees, rate changes, and total cost. Calculate the total amount you'll pay over the life of the loan, not just the monthly payment.
Before consolidating, ensure you can afford the new payment. Create a detailed budget tracking all income and expenses. Identify areas to cut spending. Build a small emergency fund to avoid using credit cards.
Make a plan to avoid accumulating new debt. Cut up credit cards, remove them from online accounts, or set very low limits. Address the spending habits that caused the debt in the first place.
If you're overwhelmed, speak with a nonprofit credit counselor (NFCC.org). They offer free consultations, can negotiate with creditors, explain all options, and help create a realistic debt management plan.