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When to Use This Calculator

Use when you have multiple high-interest debts and want to see if a single, lower-interest loan can save you money and simplify payments.

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Who Benefits Most
  • Individuals with multiple debts
  • People with high-interest credit cards
  • Borrowers seeking lower payments
Intermediate
Real-World Example: Simplifying Debt and Saving Money

Scenario

A user has three credit cards totaling $20,000 with an average interest rate of 18%. They are considering a 5-year consolidation loan at 9%.

Outcome

The calculator showed their monthly payment would drop by $150, and they would save over $7,000 in total interest, providing a clear path to becoming debt-free faster.

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