Will my payments really be lower if I’m paying debt with debt by consolidating loans? Should I Get a Debt Consolidation Loan?
Getting more loans to pay debt or paying debt with debt is a good debt restructuring answer for some individual situations and not for others. Do your homework before deciding. Enter your debt balances and the basic information about your consolidation loan and this calculator will show you the monthly payment and other important information to help you decide if this loan is right for your situation. You can even enter any additional amount you are considering borrowing and any additional principal you will pay each month to pay the loan off faster. Show the amortization schedule to see the month-by-month payment breakdown. The numbers should help you see if a consolidation loan for debt restructuring will actually lower your monthly payments or save you interest. Think Debt Advice – Debt tools, calculators, information and advice to help you find the best solutions to your debt problems. Think Debt Advice also provide debt solutions such as debt consolidation loans, debt management and IVAs.
Isn’t debt consolidation just debt restructuring by getting more loans to pay debt or paying debt with debt?
TitleA title for these calculator results that will help you identify it if you have printed out several versions of the calculator.
CreditorsThe name of the loan’s lender or credit card issuer.
Loan BalancesYour current outstanding balance on this loan or credit card.
Borrow AdditionalAny additional amount (over ‘Balance Total’) you plan to borrow with this consolidation loan.
Interest RateThe annual percentage rate you will pay for this loan.
Length of LoanHow long you will pay on this loan. Also choose whether ‘Length of Loan’ is years or months.
Additional PrincipalThe additional amount you will pay each month (over the required ‘Monthly Payment’ amount) to pay down the principal on your loan.
Balance TotalAdd down the ‘Balance’ column.
Consolidation Loan AmountThe amount you plan to borrow.
Monthly PaymentPrincipal + Interest + Additional Principal (where applicable) to be paid each month.
Total InterestTotal amount of interest you will pay over ‘Length of Loan’.
Total PaidTotal amount of principal + interest you will pay over ‘Length of Loan’.
Payoff TimeAmount of time until the loan is paid off.
Number of PaymentsThe number of payments you will make to pay off the loan.
Annual CostThe amount of money you will pay each year for this loan.