Debt Consolidation Calculator

Debt consolidation means combining multiple debts, such as credit cards, personal loans, car loans and store cards, into a single loan with one regular repayment. The aim is to simplify your finances and potentially secure a lower overall interest rate, saving you money over time.

It depends on your current debt mix, interest rates and the terms of the consolidated loan. If your existing debts have high interest rates (like credit cards at 18-22%), consolidating into a lower-rate loan can save significant money. However, extending the loan term may increase total interest paid. David can model the scenarios and give you an honest assessment.

Most unsecured and some secured debts can be consolidated, including credit cards, personal loans, car loans, store cards, medical bills and buy-now-pay-later balances. In some cases, these debts can be rolled into a home loan refinance at a much lower rate, though this should be carefully considered as it extends the repayment period.

The main risk is extending your loan term, which could mean paying more interest overall even at a lower rate. There may also be break costs on existing fixed-rate loans, and if you consolidate into a home loan you are converting unsecured debt to secured debt (putting your home at risk). David will walk you through the pros and cons honestly.

Initially, applying for a new loan involves a credit check which may cause a small, temporary dip. However, consolidation can actually improve your credit score over time by reducing the number of active credit accounts and making it easier to make consistent, on-time payments. Closing paid-off credit cards also helps.

Consolidation typically makes sense if you have multiple debts with high interest rates, you are struggling to keep track of multiple payments, or you want to reduce your monthly outgoings. It may not be ideal if your total debt is small or if most of your debt is already at a low rate. A free consultation with David can help you decide.

Yes. David has access to a range of lenders, including specialist lenders who work with borrowers who have less-than-perfect credit. While options may be more limited, there are often still pathways to consolidate and improve your financial position. The first step is a confidential, no-obligation conversation.

You will typically need proof of identity, recent payslips or income evidence, bank statements (usually 3 months), statements for each debt you want to consolidate, and a list of your monthly expenses. David will guide you through exactly what is needed and handle the paperwork for you.