January 16, 2018

How to use a consolidation loan calculator

If you have a lot of debt, a consolidation loan calculator can help you get started with getting your finances under control. It allows you to see where you stand in terms of your total debt and how the consolidation loan can help make your financial life better.

It is generally an easy tool to use, mainly because of the easy to follow instructions. Most financial institutions that provide consolidation loans also have a calculator on their website. The consolidation loan calculator is available for anyone to use when they visit the website.

The most common information you need in the consolidation loan calculator is: 

  •  Type of debt, i.e. is it a home loan, credit card debt or clothing account debt?
  • How much do you still owe? You can get this information from your latest statements or by simply contacting the company you owe money.
  • The interest rate on each debt. This will help the calculator know how much you actually owe, other than the actual loan or credit card amount.
  • You currently monthly instalment on each debt. This will be totalled up by the calculator so that it compares it to what you would pay if you take up the consolidation loan.

Once you have entered the above information, the consolidation loan calculator provides you with information on how much you owe in total (including interest rates) and what your current monthly payments are. This is then compared to how much you can qualify for as the consolidation loan, what your monthly payments will be and how long it will take you to pay off the consolidation loan. The calculator provides you with further comparisons such as how much interest you are currently paying as against what you will pay with the consolidation loan.

If you have a lot of debt, a consolidation loan calculator will give you somewhere to start. You will, first of all, get a clear idea of how much you owe in total through entering this information in the calculator. You will then be able to compare what your current debt situation is with what it could be if you were to take out the consolidation loan. For more information and further assistance with applying for a consolidation loan, contact the specialist facilitators at

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