Should you consolidate your debt?

Are you wondering whether you should consolidate your bills? Depending on the method you use, consolidation might help you save on interest and get out of debt faster. It can also provide the convenience of one monthly payment instead of many. Consider all the factors, and decide if it's smart to consolidate. Use the Consolidate Your Debt Payment calculator to experiment with different scenarios and develop a plan of action. If you'd like to see how changing your assumptions based on a fixed duration will impact your results, you should check out the Consolidate Your Debt Time Frame Calculator.

Results

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	Without consolidation		With consolidation
You will be debt free in	33 months		16 months
Principal paid:	$11,500		$11,500
Interest paid:	$2,168		$800
Fees paid:	$105		$200
Tax savings:	$0		$224
Total cost:	$13,773		$12,276
Your monthly payment will be	$408		$800

This calculator assumes monthly compounding. Taxes are accrued monthly and paid at the end of each year. Average interest rate is arrived at by weighting individual interest rates by term remaining for each rate.