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Debt Consolidation Calculator
Should you consolidate your debt? This
calculator is designed to help determine if debt
consolidation is right for you. Fill in your
loan amounts, credit card balances and other
outstanding debt. You can then see what your
monthly payment would be with a consolidated
loan. Try adjusting your terms, loan types or
rate until you find a consolidation plan that
fits your needs - and most importantly your
Loan amount owed is the total remaining balance on
a loan. If you are uncertain of your exact balance, enter an estimate that is as
close as possible.
The payment amount is your current monthly payment.
The number of months you have left to make payments
on a loan.
The outstanding balance on your credit card. You do
not need to include finance charges, they will be calculated based on your
Annual interest rate you pay on outstanding credit
card balances. This calculator assumes simple interest is charged every month at
1/12th of your annual rate.
Credit card payments are based on your outstanding
balance and annual interest rate. For this loan comparison, the monthly payment
is the amount required to pay off your credit card in the same number of months
as your consolidation loan. Your actual credit card payment may be lower, but
will often require many more payments.
Annual interest rate for your new consolidation
- Term in
Number of months for your new consolidation loan.
- Up front
Any fees you are required to pay up front to
receive this loan. This could include appraisal fees, loan origination fees,
Number of points paid for this loan. Points are
usually only paid for home equity loans.
earned on savings
This is the rate you would have received if you had
put your closing costs into savings. Enter your short term savings rate. For
most people this is currently 2% to 5% annually. Savings accounts at a bank or
credit union pay as little as 2% or less.
This is your combined federal and state income tax
rates. It is used to determine income tax savings when you use a home equity
loan to consolidate your debt.
- Loan type
The two most common loans types, home equity and
personal, differ in fees, rates and tax deductibility of interest. Home equity
loans often have higher fees, but usually have lower rates and a tax deduction
for interest paid. Personal loans do not have a tax deduction for interest paid,
and have a higher interest rate but often have lower fees. These are important
considerations when choosing a loan.
closing costs in loan
If you include your closing costs in your loan,
your loan balance, monthly payment and total interest paid will increase. You
will, however, be required to pay less money up front. Including your closing
costs in your loan may be a good option if you do not have funds available, or
you can achieve a relatively high rate of return on your savings.