Debt consolidation

Debt Consolidation: Options, Costs and Alternatives

Debt consolidation means replacing several balances with one, ideally at a lower rate and with a fixed payoff date. It is arithmetic, not magic: it saves money only when the new cost of borrowing is genuinely lower than the weighted average of what you pay now.

These guides cover the main routes — a consolidation loan, a 0% balance transfer, a nonprofit debt management plan — and the difference between consolidation and the debt settlement industry that markets itself alongside it.

Data snapshot

Credit card APR, all accounts

20.94%

As of May 1, 2026 · Federal Reserve Board (G.19), via FRED

Year over year
-0.22 pts
12-month range
20.94%21.39%

Average APR on interest-bearing credit card accounts, from the Federal Reserve's G.19 release. This is the benchmark any consolidation option has to beat to be worth doing.

Start here

Debt payoff and consolidation calculator

Avalanche (highest rate first)

3y 7m

Total3y 7m
Total interest
$4,828
Total balance
$35,700

Snowball (smallest balance first)

3y 7m

Total interest
$4,828
Extra interest vs avalanche
$0
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What this result is based on

This tool uses only the figures you enter and standard arithmetic. No external dataset feeds the result, so there is nothing to cite beyond the formula shown on the page.

This debt payoff calculator turns a loan amount, an interest rate and a term into the numbers that actually decide affordability: the monthly payment, the total interest and the date the balance hits zero.

Every figure updates instantly, so you can test a shorter term or a slightly better rate before you ever speak to a lender.

Frequently asked questions

The payment is derived from the amount borrowed, the interest rate and the number of months in the term, using the standard amortisation formula. Each payment covers that month's interest first, and the remainder reduces the balance.

Related tools and data

What people search for

Monthly US search volume for the questions this page answers, from our keyword research set.

Search queryMonthly searchesDifficulty
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Frequently asked questions

Sources