A little research. A worthwhile reward.Our editorial approach ↗
Explore offers ↗
THE DEBT GUIDE

Debt consolidation: compare the whole cost.

Compare monthly payments, interest, fees and repayment time before replacing credit card debt with a loan. A practical guide for U.S. readers.

U.S. educational content. Reviewed September 9, 2026. We are not a lender; this guide is not a credit offer.

Can consolidating debt save money?

It can if the loan’s total cost, including interest and fees, is lower than the cost of your current payoff plan. A lower monthly payment alone does not establish savings. Extending repayment can mean paying more overall.

Compare five numbers

  1. Payoff balance: ask each card issuer for the amount required to clear the card.
  2. Monthly payment: compare a payment you can sustain with the proposed loan payment.
  3. Interest rate and APR: the contract rate and annual percentage rate may differ. APR reflects certain charges as well as interest.
  4. Origination fee: establish whether it is deducted from proceeds or paid separately.
  5. Term and total repayment: check the number of payments and their complete cost, including any prepayment charge.

A deducted-fee example

Suppose you need $10,000 to clear your cards and the lender deducts 5% of the loan amount as a fee. A $10,000 loan leaves $9,500. To receive approximately $10,000, you would need to borrow about $10,526.32, if the lender permits it. Interest would accrue on the borrowed amount. This is a hypothetical example, not a quote.

Using our calculator

Enter each card’s balance, APR and intended fixed monthly payment. Then enter the loan’s contract interest rate, term and origination fee. Do not enter a fee-inclusive APR and add that same fee again. The calculator uses monthly approximations; actual charges can differ.

Compare your payoff costs ↗

The calculator shows total repayment, time to payoff and the effect of maintaining your current combined payment on the loan. Inputs are not saved or sent to a lender.

Explore worked examples: lower payment versus total cost and deducted versus upfront origination fees.

Before applying

Also consider your current repayment plan, asking the issuer for a lower rate or seeking credit counseling. A consolidation loan is different from a debt settlement service. The CFPB explains these alternatives.

Get terms in writing. Confirm fees, net proceeds and whether you can pay extra without a penalty. Rebuilding card balances can leave you with both the new loan and new card debt.

Sources and corrections

CFPB: interest rate versus APR. Published by BonusField. Send corrections to hello@bonusfield.com; do not send statements or account numbers.