The personal debt calculator is a great resource from youngmoney.com to help you decide if a debt consolidation loan is for you. You enter in what you are paying now broken down by type of debt, and it will figure out how much you can save per month instead of paying each type of debt off separately. A Debt Consolidation Loan can encompass credit card debt from both major credit cards and store accounts, auto loans (financing a car only, leases do not apply here)and other loans such as mortgage payments or college loans. Including your mortgage payment in a debt consolidation loan isn’t usually done (most people with a mortgage would try to take equity out of the home to pay off their debt or re-finance their current mortgage).

To use this calculator, simply enter in each of your credit card balances, and what the annual percentage rate you pay in interest on each card. You can find this on your statement or by calling your card company directly. If you are currently receiving a promotional rate, ask what the rate will be when the promotion is over. When calculating what you would be paying each loan you can pay the minimum monthly payment (which the debt consolidation calculator figures out as 4% of your balance) you will be paying off these balances for a long time. If you can afford to make a higher payment you will eradicate your debts a lot quicker.