Debt Consolidation Calculator

Your Debts

Debt 1 Balance: Debt 2 Balance: Debt 3 Balance:

Consolidation Loan

Annual Interest Rate (%): Term (years):

Results

Total Debt:

Monthly Payment:

Total Interest Paid:

 

Information About the Debt Consolidation Calculator (A Human Tool's View) A Debt Consolidation Calculator is a financial tool that helps you determine whether combining multiple debts (credit cards, personal loans, etc.) into a single loan or payment plan will save you money, reduce interest, or simplify repayments.

 What is the Operation of a Debt Consolidation Calculator? It compares your current debts to a possible consolidation loan to demonstrate: Inputs Required:

 ✔ Current Debts – List of loans/credit cards with:

 Outstanding equilibriums Interest rates

 Monthly payments

  New Conditions for Consolidation Loans Sum of the loan (total to be consolidated debt) (Estimated) interest rate Loan tenure (repayment period)

 ✔ Additional Fees – Processing charges, prepayment penalties (if any).

 Services Provided: 📌 New Monthly Payment – Single EMI instead of multiple payments.

 Total Interest Savings: The difference between what you save and what you owe right now. Comparison of the Repayment Period: Faster or slower payoff timeline. Break-Even Analysis: When consolidation starts to help you. Why Use a Calculator for Debt Consolidation?  Rather than tracking multiple due dates, one electronic money transfer simplifies payments.  ✅ Lowers Interest Costs – If the new loan has a lower rate.

 ✅ Improves Credit Score – Reduces missed payments & credit utilization.

 Helps determine whether consolidation is worthwhile – Prevents poor decisions regarding refinancing.  Options for Debt Consolidation It Can Evaluate 🔹 Personal Loan – Fixed EMI, lower interest than credit cards.

 🔹 Balance Transfer Credit Card – 0% introductory APR (good for short-term payoff).

 🔹 Home Equity Loan (if applicable) – Secured, lower rates but risks property.

 🔹 Debt Management Plan (DMP) – Negotiated by credit counseling agencies.

 Where to Find a Reliable Debt Consolidation Calculator?

 🔗 Bank Websites – HDFC, ICICI, SBI (India) / Wells Fargo, Citi (U.S.)

 🔗 Financial Platforms – BankBazaar, Paisabazaar (India) / NerdWallet, Credit Karma (U.S.)

 The National Foundation for Credit Counseling (NFCC) is one of the credit counseling agencies. Example Scenario

 Debt Balance (₹) Interest Rate Monthly Payment

 Credit Card 1 $200,000 24 percent 8,000 Personal Loan 3,00,000 15% ₹12,000

 Total 5,00,000 Avg.  18.6% ₹20,000

 After Consolidation (New Loan @ 12% for 3 Years):

 New EMI: 16,600 per month ➡ Interest Saved: ~₹1.5 Lakhs

 ➡ Repayment Period: Reduced by 6 months.

 Limitations to Consider

 ⚠ Does Not Reduce Principal – Only restructures debt; discipline is key.

 ⚠ May Extend Tenure – Lower EMIs could mean longer repayment.

 ⚠ Requires Good Credit – Best rates need a 700+ credit score.

 ⚠ Hidden Fees Risk – Prepayment charges or high processing fees.

 Steps Following the Calculation 1️⃣ Check Eligibility – Credit score, income stability.

 2: Look for lenders with the lowest interest rates and lowest fees.  3️⃣ Avoid New Debt – Don’t rack up fresh credit card bills!

 4: Talk to an advisor if your debts are more than half of your income.  Tip: Use the calculator to test “what-if” scenarios (e.g., shorter tenure = higher EMI but less interest).