Debt consolidation pros and cons

Last updated: 2026-08-14

Debt consolidation combines multiple debts into one modeled loan or payment plan. It can simplify payments and sometimes lower the monthly amount, but the total cost depends on rate, fees, and term.

Potential upside

A lower rate or structured payment can reduce interest exposure and make the payoff plan easier to follow.

Potential downside

A longer term can lower the monthly payment while keeping debt active for longer. Fees can also offset rate savings.

Use the calculator

Use the debt consolidation calculator to compare the modeled consolidation plan against current debt cost and timeline.