What does the Debt Consolidation Calculator do?

Compare current debt payments vs a consolidation loan. See if you save on monthly payments and total interest. All calculations are performed in your browser using official UK rates and thresholds.

Does this use current UK interest rates?

You can enter any interest rate to model different scenarios. The Bank of England base rate and FCA guidelines influence typical lending rates available in the UK market.

Should I get professional debt advice?

If you are struggling with debt, free professional advice is available from StepChange (0800 138 1111), Citizens Advice, and the National Debtline (0808 808 4000). This calculator provides estimates only.

Debt Consolidation Calculator

Compare current debt payments vs a consolidation loan. See if you save on monthly payments and total interest.

Last updated: April 2026 · Source: MoneyHelper — Debt consolidation loans

Current Debts

Consolidation Loan

Consolidation APR (%)

Term (years)

Current Debts

£230.00/month

Interest: £9,716.33

Consolidated

£128.40/month

Interest: £1,204.08

Monthly Saving

£101.60

Interest Saved

£8,512.25

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Debt consolidation replaces multiple debts — credit cards, overdrafts, store cards — with a single loan at one interest rate and one monthly payment. The idea is to reduce your overall interest cost and simplify your finances. However, it only saves money if the new rate is lower than the weighted average of your existing debts.

Extending the repayment term can lower your monthly payment but increase the total interest you pay. This calculator compares the total cost of your current debts against a consolidation loan so you can see whether you genuinely save or simply spread the cost over longer.

Before consolidating, check whether any of your existing debts carry early repayment charges. Also ensure the consolidation loan does not require security against your home, as this turns unsecured debt into secured debt and puts your property at risk.

Example: Three debts totalling £8,000

Credit card: £3,000 at 22.9% APR — £69/month
Store card: £2,000 at 29.9% APR — £50/month
Overdraft: £3,000 at 39.9% EAR — £100/month
Consolidation loan: £8,000 at 7.9% APR over 4 years — £195/month
Total interest saving vs current debts: approx. £2,100

Source: MoneyHelper — Debt consolidation loans

Frequently Asked Questions

What does the Debt Consolidation Calculator do?: Compare current debt payments vs a consolidation loan. See if you save on monthly payments and total interest. All calculations are performed in your browser using official UK rates and thresholds.
Does this use current UK interest rates?: You can enter any interest rate to model different scenarios. The Bank of England base rate and FCA guidelines influence typical lending rates available in the UK market.
Should I get professional debt advice?: If you are struggling with debt, free professional advice is available from StepChange (0800 138 1111), Citizens Advice, and the National Debtline (0808 808 4000). This calculator provides estimates only.