Debt Consolidation Planner
Last Updated: 8 April 2026
Current High-Interest Debts
Consolidated Loan Configuration
What is Debt Consolidation Planner & EMI Calculator?
The Mathematical Formula
New EMI = [Sum(Outstanding Balances) * r * (1+r)^n] / [(1+r)^n - 1] | Monthly Saving = Current Total EMIs - New EMI
📊 Practical Example
"If you have a Credit Card debt of ₹50,000 (36% APR) and a Personal Loan of ₹2.5 Lakh (16% APR), your total EMIs might be ₹15,000. By consolidating into one ₹3 Lakh loan at 12% for 5 years, your single EMI becomes ₹6,673, saving you ₹8,327 every month."
⚠️ Common Mistake
Frequently Asked Questions
Q.What is Debt Consolidation?
Debt consolidation is a financial strategy where you take out one new loan to pay off several smaller debts. Usually, this is done to secure a lower interest rate or to simplify monthly payments into a single EMI.
Q.Will debt consolidation improve my CIBIL score?
In the long run, yes. It reduces your credit utilization ratio on credit cards and ensures timely payments via a single EMI. However, taking a new loan might cause a temporary minor dip in the score due to a 'Hard Enquiry'.
Q.Which loans are best for consolidation?
Personal Loans or Loans Against Property (LAP) are the most common tools for consolidation because they offer lower interest rates compared to Credit Cards or unsecured short-term loans.
Q.Should I close my credit card accounts after consolidating?
It is often better to keep the accounts open but with 'zero balance' to maintain a long credit history and a higher total credit limit, which helps your credit score. Just avoid spending on them again.
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