Credit Card Debt Consolidation Calculator

What Is It?

A Credit Card Debt Consolidation Calculator helps you make an informed decision as to whether a credit card debt consolidation loan will help your take charge of your debts. It also helps you understand the terms of a loan that is best for you and your own circumstances.

How does it work?

A Credit Card Debt Consolidation Calculator requires you to punch in all of your various credit card balances, the interest rates and monthly payments. Then, when you can see what your total debt is, you create a model of a single, consolidated loan. This means that you juggle three factors:


• Interest rate

• Monthly payment

• Loan term

A Credit Card Debt Consolidation Calculator helps you quickly create the profile of a single, consolidated loan that will lower than the sum total of all your monthly payments while reducing your interest rate and paying off the loan in a reasonable period of time.

Here's An Example

Let's say you have 4 credit cards with the following characteristics:

1. Balance of $5000 with an interest rate of 19.00% and a monthly payment of $200.

2. Balance of $4000 with an interest rate of 18.50% and a payment of $160.

3. Balance of $3000 with an interest rate of 19.25% and a payment of $120.

4. Balance of $2000 with an interest rate of 16.50% and a payment of $80.

Together, the Credit Card Debt Consolidation Calculator tells you:

* You have a balance of $14,000 at 18.55% with a monthly payment of $560.

* It will take you just under 13 years to pay off the cards

* You'll shell out $8500 in interest.

And you're juggling 4 monthly bills to do it.

But what if you could consolidate the balances, making a single payment each month -- at a lower interest rate? Paying lower interest rates can result in paying lower monthly payments and/or paying off the loan sooner. The math can be tricky -- but a Credit Card Debt Consolidation Calculator can help you figure it out in a snap.

In this example, our Credit Card Debt Consolidation Calculator tells you that, at 12.3%, you could do a single monthly payment of $560 and pay off the loan in just over 13 years. Your total interest paid would be a bit over $4700. That's a savings of $3800.

Or you could reduce your monthly payment to $455, paying off the loan in 17 years with an interest charge of $6400. You'd save $2,100 in interest and $105 per month to your bottom line. And again, you have a single payment to manage. That's also a better deal...and a Credit Card Debt Consolidation Calculator helped you get the answer in just a few seconds.

Conclusion

When applying for a loan, you have to shop around and decide which deal is best for you. And there is never a guarantee that you can get the loan you want. You still need to qualify for the loan. That said, you can come out way ahead with a debt consolidation loan if you know how to make an informed decision about the terms that are best for you. A Credit Card Debt Consolidation Calculator can do that for you.