There are many different types of debt consolidation calculators on the internet, but they all work in two different ways:
• First, you will need to enter your preferred monthly interest rate and other details such as current monthly payment, interest rate and balance. This debt consolidation calculator will then tell you how long it will take to pay off all your debts. It also shows the amount you can save on the loan.
• The second option requires you to fill in the timeframe required to pay off your debt and then fill in the remaining details about your existing loan. This time, the debt consolidation calculator will tell you the amount you need to pay in monthly installments and the total savings that you can get from this consolidation.
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What should you pay attention to?
In choosing a good debt consolidation calculator to assess the feasibility of combining all your high interest debt, you need to make sure that the calculator has the following features:
1. Ability to enter different interest rates so you can check which interest rate is the best for you.
2. The payback period scale is easily adjustable and varies from 12 months to 30 years, so you can choose the timeframe that suits your needs.
3. A fee analysis facility where you can enter your loan fees and other processing fees to see if the final settlement fee is still lower than your individual debt payment costs.