How to use the Debt Consolidation Calculator
- 1 Enter up to three debts with balance, rate and repayment.
- 2 Enter the new loan rate.
- 3 Choose the term of the new loan.
- 4 Enter any fees and compare.
Worked example
Three debts totalling $18,000 at 20.99%, 19.99% and 12.5%. Paying $600 a month takes about 43 months with about $5,696 of interest. A three-year loan at 9.5% with $250 of fees costs $585 a month and about $3,046, saving roughly $2,650.
Features
Up to three debts
Cards, personal loans or car loans.
Current path
Time and interest to clear each debt.
New loan
Repayment and interest including fees.
Clear answer
Shows whether consolidating saves money.
When to use it
Credit card debt
Swap high card rates for a lower loan rate.
Several repayments
Simplify into one repayment.
Budget pressure
Check a lower monthly payment.
Cutting interest
Compare a shorter term.
Frequently asked questions
What is debt consolidation?
Combining several debts into one, usually a personal loan, so you make a single repayment, ideally at a lower interest rate.
Does consolidating always save money?
No. A longer term can mean more interest even at a lower rate, and fees add to the cost.
What loans can I use?
An unsecured personal loan, a balance transfer card or, with care, adding to a home loan.
Is adding debts to my home loan a good idea?
It can lower the rate, but you may pay interest for decades unless you repay the extra quickly.
Will it affect my credit score?
An application adds an enquiry. Closing paid-off cards and making repayments on time can help over time.
Should I close my credit cards?
Closing them stops new debt building up and lowers your total credit limit.
What if I cannot afford repayments?
Talk to your lenders about hardship, and call the free National Debt Helpline on 1800 007 007.
Are debt management companies worth using?
Be careful. Some charge high fees for services that free financial counsellors provide.
What fees should I check?
Establishment fees, monthly fees and early repayment fees.
Can I get a loan with existing debt?
Lenders check your income, expenses and credit history. Too much debt can lead to a decline.
How do I compare consolidation offers?
Look at the comparison rate, total repayable and any fees, not just the advertised interest rate.
Can I consolidate debts with a low credit score?
Possibly, but rates may be higher. Avoid lenders that pressure you or charge large upfront fees.
What is a balance transfer?
Moving card debt to a new card with a low or 0% introductory rate. Check the transfer fee and the revert rate when the offer ends.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated