Debt Consolidation Worksheet
Comparing the total cost of your current debts against a consolidated loan to see whether consolidation saves money.
For: People with multiple debts considering whether consolidation is financially worthwhile.
- Does not account for early repayment charges on existing debts
- Assumes you make minimum payments on existing debts
- Does not factor in the risk of extending repayment periods
- Consolidation does not reduce the amount you owe. It may increase total interest if it extends the repayment period.
- Consolidating unsecured debt into a secured loan can put your home at risk if you miss payments.
When to use it
Use this worksheet before considering debt consolidation — especially if you want to understand whether a lower monthly payment is worth the overall cost. Enter your existing debts and a potential consolidation loan to compare totals.
What it cannot tell you
This worksheet cannot tell you whether consolidation is right for you. A lower monthly payment may cost more overall if you repay over a longer period. It also does not capture non-financial factors, like whether your spending habits are likely to change.
If you are already struggling with repayments, consolidation may not solve the underlying problem. Consider free debt advice first.
Consolidation risks to understand
- A lower monthly payment can mean paying significantly more in total interest
- Consolidating unsecured debt into a secured loan (one backed by your home) creates repossession risk
- Consolidation does not address the reasons debts built up in the first place
Free debt help
Free, impartial debt advice is available from:
- StepChange · 0800 138 1111
- National Debtline · 0808 808 4000
- MoneyHelper · 0800 011 3797