Debt Consolidation
Debt consolidation combines several debts into one new loan or balance-transfer card, ideally at a lower rate. It simplifies multiple payments into one and can cut interest — but it only helps if you avoid running the old balances back up.
The test is arithmetic: consolidation only saves money if the new rate beats the weighted average of the rates it replaces, and if the term is not stretched so far that a lower payment costs more in total interest. A personal loan or a 0% balance transfer are the usual tools, the transfer typically carrying a 3–5% fee that has to be earned back before the promotional period ends. Two cautions. Using a HELOC or cash-out refinance converts unsecured debt into debt secured by your home, so a default that would have damaged your credit can now take the house. And the common failure is behavioural: the cards are cleared, the spending is unchanged, and a year later there are balances on both.
Put it to work
Debt Payoff Calculator — Snowball vs Avalanche
Enter up to three debts and compare the snowball and avalanche strategies head-to-head: payoff dates, total interest, and what the difference costs.
Credit Card Payoff Calculator
How long to pay off your credit card at your current payment — and the exact monthly amount to be debt-free in 12, 24, or 36 months.
Loan Calculator
Calculate the monthly payment, total interest, and payoff date for any personal, auto, or fixed-rate loan — and see how extra payments shorten it.