Will consolidation ease your financial burden? Debt consolidation loans allow you to transfer the account balances from multiple credit cards or installment loans to a single loan with one monthly payment This strategy works only if the repayment period for paying off the consolidation loan is shorter than your current period. Also, the interest that you pay over the repayment period should be less than what you would pay with your existing repayment periods. In some cases, a debt consolidation loan may look attractive because it has a significantly lower monthly payment than what you are paying today, but sometimes that is because the repayment period is much longer. This calculator shows you how much time and money you could save by consolidating.