yCalculator

Debt Consolidation Calculator

Last updated: April 2026

Current Debts

Add each credit card, loan or finance balance you want to compare.

Debt 1

GBP
%
GBP

Debt 2

GBP
%
GBP

Debt 3

GBP
%
GBP

Consolidation Loan

%
mo
GBP

If you can afford more than the minimum consolidation payment, enter your available budget here.

GBP

Current payments total £350 per month.

Consolidating could save you £1,076 in interest and reduce your monthly payment by £142.

Current Debts Summary

Total balance£10,000
Total monthly payments£350
Total interest to pay£3,531
Debt-free dateDec 2030

Consolidation Loan Summary

Loan amount£10,000
Monthly payment£207.58
Total interest£2,455
Debt-free dateJun 2031

Comparison Table

MetricCurrentConsolidatedSaving
Monthly£350.00£207.58£142.42
Total int.£3,531.17£2,454.80£1,076.37
Total cost£13,531.17£12,454.80£1,076.37
Free byDec 2030Jun 20316 mo slower

Debt Breakdown

DebtBalanceRateMonthlyPayoff
Credit card 1£3,00022.9%£90.00Dec 2030
Credit card 2£2,00019.9%£60.00Jul 2030
Car loan£5,00012%£200.00Nov 2028
Consolidated£10,0009%£207.58Jun 2031

Important considerations

- Extending the repayment term may reduce monthly payments but increase total interest paid.

- Secured consolidation loans against your home risk your property if you miss payments.

- Consolidation does not eliminate debt; it restructures it.

- Address the spending behaviour that created the debt.

Is debt consolidation a good idea?

Debt consolidation makes sense when the consolidation loan has a lower interest rate than your existing debts and when you do not extend the repayment term so long that you pay more interest overall. It can simplify multiple payments into one and reduce monthly outgoings.

What are the risks of debt consolidation?

The main risks are using a secured loan to consolidate unsecured debt, extending the repayment term too far, and clearing credit cards only to use them again, leaving you worse off than before.

What is the difference between secured and unsecured consolidation?

An unsecured consolidation loan is a personal loan not tied to any asset. A secured consolidation loan uses your home as security. Secured loans can offer lower rates but carry the risk of repossession if you default.

Related calculators:

- Credit Card Repayment Calculator

- Loan Repayment Calculator

- Mortgage Affordability Calculator

About this calculator

The Debt Consolidation Calculator compares current debts with a possible consolidation loan. It helps users estimate whether combining balances could reduce monthly payments, interest cost, or repayment complexity. Consolidation can help in some cases, but it can also cost more if the term is extended, fees are added, or spending continues on cleared credit lines.

Methodology

The calculator compares total remaining payments and interest on existing debts against the proposed consolidation loan.

  • Net saving = current total cost - consolidation total cost
  • Consolidation total cost = total loan payments + fees

How to use the Debt Consolidation

  1. Enter the main value or details requested by the calculator.
  2. Check the unit, date, rate, or category selected before calculating.
  3. Review the result and any supporting breakdown shown on the page.
  4. Change one input at a time if you want to compare scenarios.
  5. Keep the result with the source record if you need to refer back to it later.

Worked example

Lower monthly payment

Input: Current payments GBP 450/month, consolidation payment GBP 300/month

Result: Monthly cash flow improves, but total cost must still be checked over the full term.

Planning scenario

Input: A user enters the main details requested by the Debt Consolidation.

Calculation: Net saving = current total cost - consolidation total cost

Result: The result gives an estimate that can be checked against source documents, official guidance, or the relevant record.

How to read the result

The Debt Consolidation is designed to make the method visible, not only to produce a final number. Read the result alongside the formula, the assumptions entered, and any supporting notes on the calculator page.

If the result affects money, eligibility, deadlines, health, study planning, or legal rights, keep a copy of the inputs used. That makes it easier to explain or update the estimate later.

Inputs worth checking

Dates and periods
Dates, billing periods, tax years, academic years, and deadline periods can change the result. Make sure the period entered matches the document or question you are checking.
Rates and thresholds
Where rates, thresholds, tariffs, or grade boundaries are involved, use the current source rather than an old note or rounded memory.
Rounding
Small differences are normal when a calculator rounds intermediate steps differently from a bill, statement, payslip, or official table.

Limitations

This calculator provides an estimate only and is not financial or tax advice.

  • It does not assess credit eligibility or debt suitability.
  • Debt advice may be needed if repayments are unaffordable.

Frequently asked questions

Does consolidation always save money?

No. A lower payment can still cost more if the term is longer.

Should I close old credit accounts?

That depends on your circumstances, but continuing to spend can make debt worse.

Is this debt advice?

No. It is a cost comparison tool only.

What should I check before relying on the Debt Consolidation?

Check the inputs against the source document or real-world record that controls the calculation. For rules-based topics, also check the latest official guidance because thresholds and definitions can change.

Can I use the result as a final decision?

Use the result as an educational estimate and planning aid. It should not replace professional advice, official decisions, lender quotes, medical guidance, legal advice, or tax advice where those apply.

Related calculators

  • Credit Card Repayment Calculator
  • Interest Rate Calculator
  • APR Calculator
  • Buy Now Pay Later Calculator

What does this mean?

This calculator is designed to help you understand the likely number before you make a decision or start an application.

Your result should be checked against official UK guidance, especially if your circumstances include dependants, exemptions, prior leave, or a complex immigration history.

Treat the figure as a planning tool rather than legal advice. Where the answer affects an application deadline or major payment, speak to an authorised adviser.

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