Debt Consolidation Calculator
How it works
We project how long your current debts would take to clear at today's combined monthly payment, given a rough weighted APR. We then compute the cost of a single consolidation loan over your chosen term and APR. The difference is your saving (or extra cost).
Worked example
£12,000 across cards & overdraft at avg 23% APR, paying £650/m. Consolidate to £12k @ 9.9% over 60 months.
- Current path: ~24 months, ~£15,500 total
- Consolidation: 60m × £254 = £15,254
- Similar cost — but lower monthly frees cashflow
Who should use this
- •People juggling multiple credit cards and overdrafts
- •Anyone offered a consolidation loan
- •Households needing to lower monthly outgoings
Common mistakes
- ×Extending the term so much that you pay more total
- ×Re-using the cards after consolidating
- ×Choosing a secured 'consolidation loan' against your home — you risk losing it
- ×Skipping free debt advice when struggling
Frequently asked questions
Will consolidation hurt my credit score?▾
Short-term yes (new credit application + closing accounts). Medium-term it can help if you reduce utilisation and stay on time.
Are 0% balance transfer cards better?▾
For card debt under ~£5k that you can clear in 12-24 months, usually yes — fees are tiny vs interest saved.
Should I get a secured consolidation loan?▾
Almost never. You convert unsecured debt into a charge on your home — risking your house if you can't pay.
Will the lender pay off my old debts directly?▾
Some do (and prefer to). Otherwise you'll receive the cash and pay them off yourself — do it the day funds arrive.