Usable proceeds must retire every intended balance
An origination fee deducted at funding reduces cash available even though repayment can be based on the stated amount. A funding shortfall leaves old debt behind.
Home/Finance/Debt Consolidation
Debt Consolidation Calculator
Compare six current debts with a proposed consolidation loan using payoff penalties, three origination-fee treatments, usable proceeds, effective APR, extra principal, alternative offers, payment burden, collateral risk, break-even timing, Chart.js sensitivity, and a complete repayment ledger.
Debt consolidation, fee-inclusive APR, and break-even analysis
Compare the complete debt position before replacing several balances with one
Model six current debts, payoff penalties, their unchanged payoff path, a consolidation amount, three fee treatments, closing and monthly charges, extra principal, effective APR, rate-and-term sensitivity, an alternative offer, collateral exposure, cash shortfall, and a full ledger.
Plan with context
Consolidation should improve the whole debt position—not merely produce one smaller monthly bill.
A lower payment can come from a lower rate, a longer term, or both. Proceeds, charges, payoff timing, total interest, behavior after closing, and any collateral pledged determine whether the replacement is genuinely better.
Fee treatment changes effective cost
A financed fee accrues interest, a deducted fee reduces proceeds, and an upfront fee requires separate cash. The same percentage therefore creates different economics.
Payment relief can extend indebtedness
Stretching repayment lowers the scheduled payment but can keep principal outstanding longer and increase total interest despite an improved nominal rate.
Break-even must include remaining balances
Comparing cumulative payments alone rewards the slower-amortizing path. The balance-adjusted break-even adds remaining debt to cash already paid on each path.
Unsecured-to-secured is a risk transfer
Using home equity or another pledged asset may lower interest but places collateral at risk for debt that may previously have had no direct claim on that property.
Old revolving accounts can recreate the problem
Consolidation only reduces debt when retired balances remain paid off and the new payment fits a sustainable budget; otherwise the household can end with both the new loan and renewed card debt.
Included
Six current debts, balances, APRs, payments, payoff penalties, unchanged payoff path, stated consolidation amount, years and months, nominal rate, financed, deducted, or upfront origination fee, other closing and monthly charges, extra principal, usable proceeds and shortfall, cash-flow effective APR, alternative offer, income burden, secured or unsecured classification, collateral value, rate-and-term sensitivity, balance-adjusted break-even, Chart.js cost and balance visuals, and monthly amortization.
Not included
Approval, credit-score effects, variable rates, daily interest, exact payoff-statement dates, late fees, settlement discounts, creditor consent, lien priority, appraisal and recording costs, tax deductibility, bankruptcy alternatives, collection litigation, prepayment penalties on the new loan, home-equity draw periods, or regulated APR disclosure rules.
Use it well
Obtain written payoff statements and loan disclosures, compare the same settlement date, verify net proceeds after every deduction, include optional products only when intentionally chosen, preserve emergency cash, plan how retired accounts will be handled, and get independent counseling before pledging a home.