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Debt Consolidation Calculator

Compare the true cost of a consolidation loan against your DIY payoff plan.

Debt consolidation rolls several debts into a single loan with one monthly payment — ideally at a lower rate. But a lower headline APR is not always cheaper once you factor in fees and a longer term. This calculator compares the all-in cost of a consolidation offer against your DIY snowball/avalanche plan, so you can see the real difference before you sign anything.

Your debts

Pre-filled with an example — edit the numbers to match your own.

Minimums total £325 / month.

Applied in month 1 (e.g. a bonus or tax refund).

Repayment strategy

Debt-free date

July 2029

3 yr 1 mo

Total interest paid

£3,645.62

avalanche method

Total amount paid

£18,145.62

principal + interest

Interest you could save

£91.61

avalanche vs other method

Snowball vs Avalanche — side by side

Snowball

Time to debt-free
3 yr 1 mo
Total interest
£3,737.23
First debt cleared
Credit Card B

Avalanche

Lowest interest
Time to debt-free
3 yr 1 mo
Total interest
£3,645.62
First debt cleared
Credit Card A
The avalanche method saves £91.61 in interest.

Total balance over time

How your combined debt falls under each strategy.

Payoff order

The order your debts clear under the avalanche method.

  1. 1Credit Card A
  2. 2Credit Card B
  3. 3Personal Loan

Payoff schedule

37 months total
MonthInterestRemaining balance
1£198.54£14,198.54
2£193.66£13,892.2
3£188.7£13,580.9
4£183.65£13,264.56
5£178.52£12,943.07
6£173.29£12,616.37
7£167.98£12,284.35
8£162.58£11,946.92
9£157.08£11,604
10£151.49£11,255.49
11£145.8£10,901.28
12£140.01£10,541.29

Should you consolidate?

Compare a single consolidation loan against your DIY avalanche plan.

Your DIY plan (avalanche)

Time to clear
3 yr 1 mo
Total interest
£3,645.62
Total cost
£18,145.62

Consolidation loan

Monthly payment
£378.07
Total interest
£3,212.52
Total cost (incl. fee)
£18,147.52
Your DIY avalanche plan looks cheaper by about £1.9. Consolidating at these terms would cost more — try a lower APR, smaller fee, or shorter term.Estimate only — not a quote or financial advice. Check the lender's actual terms and any early-repayment options.
Next step

Ready to lower your interest rate?

If your plan shows consolidation could save you money, compare real, regulated lenders and 0% balance-transfer cards before you apply. Always check the representative APR, fees, and eligibility.

Affiliate disclosure: these are sponsored comparison links. We may earn a commission at no cost to you. This is not financial advice — check each provider's terms before applying.

Frequently asked questions

When does debt consolidation make sense?

Consolidation usually helps when the new loan rate is meaningfully lower than the weighted average APR of your current debts, the fees are modest, and the term is not so long that it cancels out the rate saving. Our tool computes the all-in cost so you can judge it on your numbers.

How is the consolidation cost calculated?

We treat the consolidation as a standard amortising loan. The loan amount equals your total balance plus any origination fee. The monthly payment is derived from the annuity formula using the new APR and term, and total interest is the sum of all payments minus the loan amount.

Does consolidating hurt my credit?

Applying involves a credit check, and opening a new loan can temporarily affect your score. Over time, reliably paying down a consolidated balance can help. This tool models cost only — it is not financial advice. Consider speaking to a regulated adviser or a free debt charity.

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