Rolling high-interest balances into a single lower-rate loan can cut your interest and give you one fixed payment. Compare your current path against a consolidation loan and see the real difference.
How this works. For your current debts we apply the average rate to the total balance and your current monthly payment until it clears. For the consolidation loan we assume you borrow the full balance at the new rate over the chosen term as a standard installment loan (monthly compounding) with a fixed payment. Real consolidation loans may charge origination or discharge fees and depend on your credit approval. This is an independent tool, not financial advice.
It works best when the new rate is meaningfully lower than what you pay now — for example, moving credit-card balances near 20% into a personal loan or line of credit closer to 8%–12%. You get one predictable payment and a firm payoff date instead of several revolving balances.
A longer term lowers the monthly payment but can raise total interest, even at a lower rate. This calculator shows both numbers so you can balance an affordable payment against the cheapest overall cost. Shorten the term if you can handle the higher monthly amount.
Consolidation only helps if you don't run the old balances back up. Keep the cleared cards paid in full. If you'd rather attack the debts directly without a new loan, compare the snowball and avalanche approaches in the debt payoff calculator, or model a single card in the credit card payoff calculator.