![]() ![]() Lower creditworthiness may make some borrowers ineligible for a low enough interest rate that would make debt consolidation a good idea. Lenders consider the applicant’s creditworthiness and income to determine the interest rate they offer. Results from a calculator should be considered estimates since calculators themselves can’t guarantee a certain interest rate. Monthly Personal Loan CalculatorĪfter the Debt Consolidation Loan Calculator Your monthly payments reduce to $461, and you pay a total interest of $1,554. Let’s say you decide to consolidate this debt using a personal loan with a 14.99% APR and a 24-month repayment term. If your goal is to pay down this total debt of $9,500 within 24 months, your monthly payment would be around $487, and over 24 months, you would pay a total interest of $2,186. ![]() The third card has a balance of $1,000 and a 19.07% APR.The second card has a balance of $2,500 and a 20.18% APR.The first credit card carries a balance of $6,000 with an 21.24% APR.Input the debt you currently owe on credit cards or loans, your current monthly payments, and the annual percentage rate (APR) you pay on each.Īssume you have three credit card balances that you need to pay down: How do you calculate a personal loan payment? Ultimately, you’ll repay your total loan amount plus any interest and processing fees. If you’re looking to consolidate credit card debt, the sum of your outstanding balances should be the loan amount you apply for. When applying for a debt consolidation loan, you will need to know exactly how much money you require to pay off your existing high-interest debt. These are term loans that have a fixed repayment schedule. Personal loans used for debt consolidation can have repayment periods ranging from one year to five years. Keep in mind, though, that even if you find a lower interest rate, you may end up paying more on your debts in the long run if your consolidation loan’s term length is longer than that of your current debts. Remember that your creditworthiness will impact the interest rates your lender offers you.Īlways aim for a debt consolidation loan with a lower interest rate than what you owe on your existing debts. It is usually a percentage of the amount borrowed that lenders factor into your repayment. Interest is the amount a lender charges you for borrowing money. Knowing the terminology behind a debt consolidation loan will ensure you can enter accurate information into a calculator to get the most helpful results. Understanding the Debt Consolidation Loan Calculator Terms Here’s how a debt consolidation loan calculator works and how you can calculate personal loan payments. It can also help you understand how these loans may change your monthly payments and how much interest you may have to pay. A debt consolidation loan calculator can help you determine if combining your outstanding debts into a single personal loan will help you better manage your debt. ![]()
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