Debt Consolidation Calculator UK

How to use this debt consolidation calculator

1. Enter each existing debt: Add the balance, APR and current minimum monthly payment for every credit card, loan or overdraft you want to compare.
2. Set the new loan terms: Enter the consolidation loan APR, term in months and any origination, arrangement or balance transfer fee.
3. Compare the results: Check the new monthly payment, total interest, estimated payoff time and whether the loan saves money or only reduces monthly pressure.
4. Test different scenarios: Try a shorter term, higher APR, extra monthly payment or fee to see how sensitive the result is.

How Debt Consolidation Works (and When It Helps)

A debt consolidation loan replaces multiple balances (often credit cards or personal loans) with a single new loan. The two main reasons people consolidate are (1) to secure a lower interest rate and reduce total interest, and (2) to create a simpler, predictable monthly payment. When consolidation reduces your APR without stretching the term too far—or when it trades a volatile set of card minimums for one affordable payment—it can be a useful tool.

This calculator models both sides: your current debts using a minimums-only benchmark, and a single amortizing loan with your chosen APR, term length, and any origination or transfer fees. We compute the new monthly payment, total interest over the life of the loan, and the projected months to debt-free. You’ll also see the difference in monthly outflow and estimated interest savings versus staying the course. Because everything runs locally in your browser, your inputs stay private.

Key ideas to keep in mind

• Rate vs. term trade-off: A lower APR usually lowers interest, but a much longer term can increase total interest even if the payment is smaller. Check the “Total Interest” line, not just the monthly payment.
• Fees matter: Origination or balance transfer fees effectively increase the amount financed. Add them in to get a realistic comparison.
• Behavior beats math: Consolidation works best when you stop new spending on the paid-off cards. Otherwise, you could end up with both a new loan and fresh card balances.
• Extra payments accelerate payoff: Even a small fixed extra amount toward principal each month can meaningfully reduce time and interest.

Example

Suppose you have £7,500 across cards at 19–25% APR with £250 in combined minimums. A 10.99% consolidation loan for 48 months (3% fee) might set your new payment around £196–£205, trimming monthly strain and reducing long-run interest if you avoid new charges. If the new term were 84 months, the payment would drop further but total interest might rise—use the calculator to see the trade-offs.

Informational only — not financial advice. Lender policies, compounding conventions, and your real minimums may differ from this simplified model. Always review actual loan terms and your statements.

Before you consolidate debt, check these 7 things

• Total cost, not just monthly payment: A longer term can reduce the monthly payment but increase total interest.
• All fees: Include arrangement fees, balance transfer fees, broker fees and early repayment charges on existing debts.
• APR you are likely to get: Representative APR may not be the rate you are offered.
• Secured vs unsecured borrowing: Secured debt may put your home or other assets at risk if you cannot repay.
• Credit score impact: Applications and new borrowing can affect your credit file.
• New spending risk: Consolidation can backfire if you clear cards and then build new balances again.
• Debt advice: If repayments are already unaffordable, speak to a free debt advice charity before taking on new credit.

How the calculator estimates savings

The calculator compares two scenarios. First, it estimates your current repayment path using each debt’s balance, APR and minimum monthly payment. Second, it models a single amortising consolidation loan using the loan amount, APR, term and fee you enter.

The estimated savings figure is the difference between the projected interest on your current debts and the projected interest on the consolidation loan. The result is only an estimate because real lenders may calculate interest, fees and minimum repayments differently.

Debt consolidation calculator FAQs

What is a debt consolidation loan?

A debt consolidation loan is new credit used to pay off several existing debts, leaving you with one monthly repayment. It may simplify budgeting, but it does not remove the debt.

Will debt consolidation always save money?

No. A lower APR can reduce interest, but a longer term or high fees can mean you pay more overall. Compare total interest and total repayment, not only the monthly payment.

What fees should I include?

Include arrangement fees, origination fees, balance transfer fees, broker fees and any early repayment charges on debts you are paying off.

Can I consolidate credit card debt?

Yes, but compare a personal loan with balance transfer cards and your current repayment plan. A lower payment can still cost more if the repayment term is much longer.

Is debt consolidation a good idea with bad credit?

It depends on the APR and terms you are offered. If the new loan has a high rate or is secured against your home, it may increase risk. Consider free debt advice before applying.

Does this calculator store my debt information?

No. The calculation runs in your browser, so your inputs are not uploaded to the server by this tool.