Debt Consolidation Calculator: What You’d Save Monthly

You replace several high-interest debts — credit cards at 20%+, unsecured loans, tax arrears — with one lower-rate loan and one payment. For homeowners the cheapest route is secured: a refinance, second mortgage, or home equity loan at a fraction of card rates.

Yes — either by refinancing your first mortgage to a bigger balance, or by adding a second mortgage and leaving your first untouched. The second is usually the answer when your existing rate is low or your credit won’t pass bank refinancing rules.

As a homeowner, yes — equity qualifies you when your score won’t. Unsecured consolidation loans need good credit, but B and private lenders approve homeowner consolidations with scores in the 500s because the property secures the loan.

Usually the opposite. Paying cards to zero drops your utilization — one of the biggest score factors — and replaces multiple minimum payments with one on-time payment. Many homeowners see their scores improve in the months after consolidating, though timing depends on the rest of the file.

A consolidation loan repays creditors in full and protects your credit. A consumer proposal settles debts for less but is a formal insolvency: it drops your rating to R7 and sits on your bureau for years, and it can complicate future mortgage approvals. Which route is right depends on your equity, total debt, affordability and long-term cash flow — and anyone seriously weighing insolvency should also speak with a licensed insolvency trustee. For homeowners with enough equity, consolidation is usually worth pricing first because it repays in full and protects your credit.

Moving $60,000 of 21% card debt to a 7.5% secured loan cuts interest from about $1,050 to $375 a month — before even touching the principal. Use the calculator above with your own balance and rate to see the spread.