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Debt Consolidation Calculator: Simplify Your Repayments
Managing multiple debts can be overwhelming. Minemi’s Debt Consolidation Calculator helps you combine various debts into a single, manageable loan, potentially reducing your EMI burden and streamlining your financial obligations.
The results provided are for informational purposes only. Actual loan terms will depend on the lender’s evaluation and your credit profile
Updated Oct 14, 2024 · 3 min read
Written By: Shanti and Mayank
Lead Writer 
Edited by Priya K
Fact Checked
Steps
1. Understand Debt Consolidation
Debt consolidation involves combining multiple debts into a single loan, ideally with a lower interest rate and more favorable terms. This approach simplifies repayments and can reduce the total interest paid over time.
MinEmi Tip:
Consolidating debts can also improve your credit score by ensuring timely repayments.
2. Evaluate Your Financial Situation
Before proceeding, assess your current financial health:
- List All Debts: Consolidation rolls multiple debts into one new one.
- Calculate Total Debt: Sum up all outstanding balances.
- Assess Monthly Payments: Determine the total amount paid monthly towards debts.
- Review Interest Rates: Note the interest rates for each debt.
MinEmi Tip:
Understanding your financial standing helps in making informed decisions about debt consolidation.
3. Identify Debts Eligible for Consolidation
Not all debts are suitable for consolidation. Typically, unsecured debts like credit card balances, personal loans, and education loans are eligible. Secured debts, such as home loans, may not be ideal candidates for consolidation.
4. Use Minemi’s Debt Consolidation Calculator
Input your existing debts into Minemi’s Debt Consolidation Calculator to estimate:
- New EMI Amount: The expected monthly payment after consolidation.
- Total Interest Payable: The cumulative interest over the loan tenure.
- Total Repayment Amount: The sum of principal and interest to be repaid.
Example:
| Loan Type | Amount (₹) | Interest Rate (%) | Tenure (Years) | EMI (₹) | Total Repayment (₹) |
|---|---|---|---|---|---|
| Credit Card | ₹1,00,000 | 18% | 2 | ₹5,016 | ₹1,20,384 |
| Personal Loan | ₹2,00,000 | 15% | 3 | ₹6,933 | ₹2,49,588 |
| Total | 3,00,000 | 11,949 | 3,69,972 | ||
Consolidated Loan:
| Amount (₹) | Interest Rate (%) | Tenure (Years) | EMI (₹) | Total Repayment (₹) |
|---|---|---|---|---|
| ₹3,00,000 | 12% | 3 | ₹9,967 | ₹3,58,812 |
Your Monthly Savings Would Be:
N/A
Consolidation
loan amount:
New Monthly
Payment:
MinEmi Tip:
A consolidated loan with a lower interest rate can significantly reduce your EMI and total repayment amount.
5. Compare Consolidation Loan Offers
Research various lenders to find the best consolidation loan terms:
- Interest Rates: Lower rates reduce overall repayment.
- Loan Tenure: Choose a tenure that balances EMI affordability and total interest paid.
- Processing Fees: Be aware of any additional charges that may apply.
MinEmi Tip
Use Minemi to compare personalized loan offers from multiple lenders.
6. Apply for a Debt Consolidation Loan
Once you’ve selected a suitable offer:
- Gather Necessary Documents: Proof of income, identification, and existing loan statements.
- Submit Application: Apply through Minemi’s platform for a seamless experience.
- Await Approval: Lenders will assess your application based on creditworthiness.
7. Close Existing Debts
Upon receiving the consolidation loan:
- Pay Off Existing Debts: Use the funds to clear all debts included in the consolidation.
- Obtain Closure Letters: Ensure you receive official confirmation of debt closure from previous lenders.
8. Manage Your New Loan Effectively
Adopt disciplined financial habits:
- Timely Payments: Set up automatic payments to avoid missing EMIs.
- Budgeting: Adjust your budget to accommodate the new EMI.
- Avoid New Debts: Refrain from accumulating additional debts during the repayment period.
9. Monitor Your Credit Score
Regularly check your credit score to track improvements resulting from timely repayments. A higher credit score can open doors to better financial opportunities in the future.
MinEmi Tip:
Use Minemi’s platform to monitor your credit score and receive personalized financial advice.
Frequently Asked Questions
What is a debt consolidation loan?
How can I calculate my EMI for a consolidated loan?
Does consolidating debt hurt my credit score?
What types of debts can I consolidate?
Can I consolidate secured and unsecured loans together?
How does debt consolidation save money?
When is debt consolidation not recommended?
MinEmi Tip:
Debt consolidation with Minemi not only simplifies repayments but also provides insights to improve your financial profile. Explore your options today and make informed financial decisions.
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