One of the biggest obstacles to true financial security is a heavy debt load. If you have a lot of consumer debt, such as student loans, credit card debt and personal loans, you may be able to save money by consolidating your debt. When you consolidate debt, you take out a loan, such as a home equity loan if you own a home and have sufficient equity, that is large enough to pay off all or most of your existing debt. Then you will have just one payment to make each month, which may be lower than the total payments you were making on several loans. In addition, you could potentially save hundreds or even thousands of dollars in interest. This calculator can help you determine if debt consolidation makes sense for you.
Note that the interest on all loan types is assumed to be compounded monthly.