Debt consolidation
Got debts spread across cards and loans? See whether rolling them into one consolidation loan would lower your monthly payment — and whether it costs more overall.
What you owe now
The consolidation loan
Now vs consolidated
A lower monthly payment over a longer term can still mean paying more interest overall. Compare the total cost, not just the monthly figure.
What consolidation can and cannot do
Rolling several expensive balances into one cheaper loan does two real things: it cuts the interest rate on the whole pile, and it replaces a scatter of minimum payments with one fixed figure and an end date. What it cannot do is remove debt. £9,000 owed is £9,000 owed, and the win or loss lives entirely in the rate, the term, and whether the old cards stay at zero afterwards.
The default example, and the catch in the term
Carry £9,000 at 22% paying £300 a month and you're 3.7 years and £4,186 of interest from freedom. Consolidate at 9.9% over three years and the payment drops a little to £290, the finish line moves eight months closer, and total interest falls to £1,439: £2,747 saved. The catch appears when the new loan stretches the term. A lower APR over a long enough term can still cost more in total than the ugly rate paid off fast, which is why this calculator shows both columns to the end rather than just comparing monthly payments. Watch for arrangement fees, and treat any offer secured on your home as a different and more serious decision: it converts a missed card payment into a threat to the house.
Making it stick
Consolidation fails in one specific, well-documented way: the cards get cleared, feel empty, and quietly refill, leaving the loan and the balances. If that risk is live, close or freeze the old accounts on day one. Once the structure is set, the loan calculator prices any single loan on its own, and when there's finally spare money each month, the pay debt or invest calculator answers the next question in the queue.
Common questions
What does consolidating debt do?
It replaces several debts with one loan and one monthly payment. The calculator compares your current total payments and interest with a single consolidation loan so you can see whether it actually saves money.
Is consolidating always cheaper?
No. A lower monthly payment spread over a longer term can mean more interest in total. Consolidation helps most when the new rate is lower than your existing debts and you do not stretch the term too far.
Will it affect my credit?
Applying for a new loan involves a credit check, and closing old accounts changes how much of your available credit you use. Used to clear high-interest debt and kept up with, consolidation can help over time, but missed payments do harm.
These results are estimates for general information only and are not financial advice. Check every figure yourself and seek appropriate advice from a qualified professional before making any decision. Read the full disclaimer.