This personal debt consolidation calculator is designed to help determine whether debt consolidation is right, in which case personal loans could be worth exploring.Enter the credit cards, auto loans and other installment loans balances by clicking on the "Enter Data" button for each category.Prior to beginning repayment, a credit counseling agency (CCA) will negotiate with creditors to reduce interest rates and settle on manageable monthly payments.Once these are set, all payments are totaled and this amount is withdrawn from a client’s personal bank account as one single monthly payment.The other type is carried out through a debt management program (DMP).In this scenario, an account will be created to keep track of all the balances owed to current creditors.This repayment method will include lowered interest rates than those a client would have on their own and all debt would be paid within a five year period.
Lastly, pursuing a loan may resolve your current financial problem, but does little to prevent the reoccurrence of debt.
Working with a nonprofit credit counseling organization such as Debt Reduction Services can save you money over time, develop a long-term solution, and is effective because of adherence to governmental regulations.
If your financial debts are fairly insignificant, you feel confident you can develop a repayment strategy, and you are ready to maintain the discipline necessary to pay your debts off on your own, your first step would be to gather creditor information and current balances for each account owed.
Then change the consolidated loan amount, term or rate to create a debt consolidation loan that will work within the budget.
Click the "View Report" button for detailed results.