🔀 Debt

Debt Consolidation Calculator

Compare debt payoff strategies side by side. Find out if a balance transfer, personal loan, or the snowball method will save you the most money and time.

Your Current Debts

Extra Monthly Payment ($) Amount you can pay each month above your minimums.

💳 Balance Transfer Assumptions

Intro APR (%)

Intro Period (Months)

Transfer Fee (%)

Regular APR (%)

🏦 Personal Loan Assumptions

Loan APR (%)

Loan Term (Months)

Origination Fee (%)

How It Works

Debt consolidation combines multiple debts into a single account, ideally with a lower interest rate. This calculator compares three popular strategies:

Debt Snowball (or Avalanche): You keep your current debts and pay them off systematically, applying any extra cash to one debt at a time (this calculator optimizes by targeting the highest APR first to minimize interest).
Balance Transfer: You move your balances to a new credit card offering a 0% introductory APR. You pay a small transfer fee, but avoid interest during the intro period.
Personal Loan: You take out a fixed-rate loan to pay off your debts, leaving you with one predictable monthly payment for a set term.

Which Method Is Right For You?

If your credit score is 670+: A balance transfer likely wins. You can secure a 0% intro period and aggressively pay down the principal.

If you want one fixed payment: A personal loan wins. It forces a structured payoff timeline and consolidates multiple due dates into one.

If you can't qualify for either: The Snowball/Avalanche method wins. You can still save thousands by paying extra toward your highest-interest debts first.

📋 Worked Example: Alex's Consolidation

Alex has $8,500 in credit card debt across 3 cards at a 20% average APR. He can pay $350/mo.

Strategy	Interest/Fees Paid	Months to Payoff
Keep Current Cards	$2,147	32 months
Balance Transfer (3% fee, 18mo 0%)	$300 (fee) + $0 (int) = $300	25 months
Personal Loan (12% APR, 36mo)	$1,664	36 months

💡 Key insight: By using a balance transfer card, Alex saves $1,847 compared to paying off the current cards, and cuts his payoff time by 7 months.

Frequently Asked Questions

What credit score do I need for a balance transfer card?

Typically, you need a good to excellent credit score (670+) to qualify for most 0% intro APR balance transfer credit cards.

What if I can't pay off the balance before the intro period ends?

If you don't pay off the balance before the intro period expires, the remaining balance will be subject to the card's regular, usually much higher, APR.

Does debt consolidation hurt my credit score?

It can initially cause a slight drop due to a hard inquiry. However, making consistent on-time payments and lowering your credit utilization can improve your score over time.

What is a debt consolidation loan origination fee?

An origination fee is an upfront fee charged by lenders for processing a new loan application, typically ranging from 1% to 8% of the loan amount.

Is it better to do a balance transfer or a personal loan?

A balance transfer is better if you can pay off the debt during the 0% intro period. A personal loan is better for longer-term payoff or if you prefer fixed monthly payments.

Calculations assume constant monthly payments and compounding interest. Results are estimates for educational purposes and do not constitute financial advice. See our methodology →