Debt consolidation loan calculator sites are all over the web. If you’re in debt, it’s worth looking at what these debt consolidation calculator sites would suggest your monthly payments could be. By lumping your debt together, you may be able to achieve a payment plan that prevents you from going further into debt.
When you put all your debts together, you may be given a much lower interest rate than you’re already paying. Many credit cards have rates that stretch as high as 29%. Run some numbers in a debt consolidation calculator and see what options you’re given instead. You may be able to stretch payments out further, too, which reduces the amount of each payment. This can reduce the stress of payments. If you do this, you can still set money aside or pay more than the monthly payment – without having the stress of higher payments.
If you can do a secured loan – such as through your home equity – you may be able to get a preferred rate on interest.
If you find it stressful to be paying several loans and this financial chaos leads you to miss payments, you might want to look at a debt consolidation loan that just gives you one monthly payment. Having all your debt at one financial institution may help you save time — and stop you from being hounded by several creditors, assuming you make your new payments consistently, of course.
Of course, debt consolidation doesn’t work for everyone and you should never make a decision about your finances without talking to some advisors. Shop around, do your due diligence and find out what will work best for you. But there’s no harm in looking at a few debt consolidation calculators to figure out what will work best for you!