This Debt Consolidation Loan Calculator helps you determine the monthly payment for consolidating all your existing debts into one loan with a lower interest rate. By entering the total debt, interest rate, and loan term, you can calculate your potential monthly payment.

Debt Consolidation Loan Formula

Monthly Payment = Total Debt × Interest Rate / Loan Term

Example Calculation

If your total debt is $5,000, the annual interest rate is 5%, and the loan term is 5 years, your monthly payment will be calculated accordingly.

Why It Matters

Consolidating debt can lower your overall interest rate, making monthly payments more manageable and helping you pay off your debt faster.

Tips

Try to keep the loan term as short as possible to save on interest over time, but make sure the monthly payment fits comfortably within your budget.

FAQs

What is a debt consolidation loan? A debt consolidation loan combines multiple debts into one loan with a lower interest rate, making it easier to manage payments.

Is debt consolidation the right choice for me? If you’re struggling with multiple high-interest debts, consolidation may help you reduce your overall payments and pay off your debts more efficiently.