How to use it
- Enter Total debt.
- Enter New rate %.
- Enter Term (years).
The formula
One new loan replaces several balances.
Worked example
Rolling three cards into one lower-rate loan can cut the monthly payment.
Frequently asked questions
Does it save money?
Only if the new rate and term lower total cost.
Any risk?
Freeing up cards can tempt new debt — close or freeze them.
Tips
- A shorter term costs less overall even if the payment is higher.
- Check the APR, not just the rate, to compare fairly.
- Read the fine print for fees and prepayment penalties.
Key terms
- APR
- Yearly cost including fees, as a percentage.
- Term
- How long you repay the loan.
- Collateral
- An asset securing the loan.