See if consolidation actually saves money after fees — or just lowers your monthly.
Add your current debts and a proposed consolidation loan. The calculator computes blended APR, runs both scenarios side-by-side, and shows the real interest saved after origination fees.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
Replacing multiple high-rate debts with one lower-rate loan.
Roll multiple credit cards, personal loans, or other revolving debt into a single loan with a lower interest rate. The math wins when the new rate (plus any fees) is meaningfully lower than the weighted average rate of what you're consolidating.
Short-term dip, long-term boost if executed right.
A new loan triggers a hard inquiry (5–10 point drop). Paying off cards drops utilization (positive). Over 6–12 months, scores typically recover and exceed where they started — if you don't re-charge the cards.
When the new rate is 4%+ lower than your weighted average APR.
Consolidating a 22% credit-card mix into a 12% personal loan is a clear win — typically saves thousands. Consolidating 18% cards into a 16% loan is barely worth the inquiry. Run the math.
Origination fees, longer terms, and the temptation to re-charge.
Personal loans often charge 1–8% origination fees. Some consolidations stretch the term, increasing total interest even at lower rate. And the biggest trap: paying off cards and then running them back up.
The mechanics in short answers — no jargon, no upsell.
Weighted average of current rates (each balance × its rate, divided by total balance). This is what consolidation needs to beat.
Personal loan: 7–18% based on credit. Balance transfer: 0% for 12–21 months + 3–5% fee. HELOC: 8–10% (secured).
Origination fees come out of the loan proceeds. A 5% fee on $20k means you need $21k in loan to pay off $20k of debt.
A 5-year personal loan can save thousands at lower APR. A 7-year stretches the term and may actually cost more despite lower rate.
Designed so anyone can model their situation in under a minute, with or without a finance background.
Interest saved over the life of the new loan vs current trajectory.
Personal loan, balance transfer, HELOC — side by side.
Origination, transfer, and closing costs factored in.
One due date, one statement, one APR.
See the cost of re-charging cards after consolidation.
The exact month you finish.
Everything you might ask before, during, or after using this tool.
Balance transfer wins for amounts you can pay off in 12–21 months (the promo window) — 0% APR is unbeatable if you finish in time. Personal loan wins for larger balances or longer payoff horizons — fixed rate, fixed term, predictable.
Personal loans: 660+ for decent rates, 720+ for best pricing. Balance transfer cards: 700+ for the best offers. Below 660, expect rates that don't beat your existing credit cards — at which point consolidation doesn't make sense.
Not automatically — the lender pays off the balances; the cards stay open. You should keep them open (at zero balance) to maintain your total credit limit and avoid utilization spike. Just don't use them.
Best rates (typically 8–10%), but you're putting your home up as collateral. If you can't pay, you can lose the house. Only use HELOC for consolidation if you have absolute confidence in the payback plan.
In 2026, 7–10% for excellent credit (760+), 10–15% for good credit (700–759), 15–22% for fair credit (640–699). At 22%+, you're not gaining anything over credit cards.
Almost never. Debt-relief companies (settlement, not consolidation) tank your credit, may not work, and charge huge fees. Their pitch sounds like consolidation but the mechanism is "stop paying creditors and negotiate settlements" — destroys credit for 7 years.
Personal loan: 1–7 days from application to funding. Balance transfer: 7–14 days from approval to balance moving. HELOC: 30–60 days due to home appraisal and title work.
Federal student loans usually shouldn't be consolidated to a private loan — you lose income-driven repayment, PSLF eligibility, and other federal protections. Private-to-private consolidation can make sense if the rate is meaningfully lower.
Other Lazysmirk tools that pair well with this one.
See exactly how many months it will take to pay off your credit card — and how much interest you'll save by paying more than the minimum. Free, instant, no signup.
Calculate your monthly EMI, total interest, and full repayment cost on any personal loan. Compare lenders, model prepayments, and avoid the flat-rate trap.
See if a 0% APR balance transfer actually saves money — fee vs interest, promo math, and the post-promo risk.
See how fast you can become debt-free with the snowball method — pay off your smallest debt first, then roll the payments forward. Compare snowball vs avalanche side by side.
See how long minimums take to pay off, and how much faster + cheaper a fixed payment finishes the debt.
The math: new rate (including fees amortized) needs to be 4–6 percentage points lower than your weighted average APR for the win to be significant.
Consolidating 22% credit cards into 12% personal loan = clear win.
Consolidating 18% cards into 16% loan = barely worth the inquiry.
A 5% origination fee on $20k of debt is $1,000 — equivalent to paying 2.5 percentage points more interest over a 2-year payoff.
For longer payoff periods (4–5 years), fees matter less. For short payoff (1–2 years), they often kill the consolidation case.
Consolidation pays off your credit cards. They now have zero balance.
Without behavior change, many people run them back up to where they were before, while still paying the consolidation loan — total debt doubles.
The fix: leave the cards open for utilization but commit to no new charges until the consolidation is paid off.
Balance transfer: best for small balances (under $10k) you can pay in 12–18 months.
Personal loan: best for medium balances ($10–50k) with fixed payoff in 3–5 years.
HELOC: cheapest rates, but secured by your home — only if you trust your discipline.
Cash-out refinance: extends debt over 30 years and ties it to your home. Generally avoid for consolidation unless you can keep payments short.
Two short notes worth reading before you trust any number on this page.
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We are not a bank, NBFC, advisor, broker, or distributor of any financial product. The numbers shown here are estimates for educational purposes only, based on the inputs you provide.
Results are not financial, legal, or tax advice. Please consult a qualified professional before any decision about your loan, investments, or personal finances. Actual loan terms and charges depend on your bank and individual circumstances.
