I discuss what factors to consider ahead of time if you are thinking about consolidating debt. It’s about more than simply cash flow. I point out the following factors:
Cash flow
Interest expense
Simplicity
Impact to credit score
Adding the new savings back into the loan payment

I use the following amortization calculator in my 2 examples:
https://www.calculator.net/amortization-calculator.html

There are other useful calculators like this one if you are thinking of consolidating. Use them! You can look at various scenarios and decide if it is right for you.

I leave a lot of room in my first example because of the credit cards. If you end up handling those differently then you can use a credit card calculator to help.

I go through a lot of detail in my examples because I want everyone to grasp how I evaluate each consolidation scenario. Sometimes I tell a customer it doesn’t make sense to go through with it. I am never in the camp of “Debt Consolidation loans are a ripoff” but I also don’t agree with doing it every time.

The main point I’m trying to make here is: consider all the factors! Sometimes you can cost yourself a lot in new interest by consolidating.

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