Debt Consolidation Calculator

How To Use A Debt Consolidation Calculator?

Using a debt consolidation calculator can be a helpful tool when you want to assess your options for consolidating your debts. It allows you to determine if consolidating your debts into a single loan is a viable solution for you. Here’s a step-by-step guide on how to use a debt consolidation calculator effectively:

1. Gather your debt information: Start by collecting all the necessary information about your current debts. This includes the outstanding balances, interest rates, minimum monthly payments, and any additional fees or charges associated with each debt.
2. Find a debt consolidation calculator: Search for a reliable debt consolidation calculator online. Many financial websites and loan providers offer these calculators free of charge. Choose one that provides comprehensive calculations and takes into account various factors such as interest rates, loan terms, and fees.
3. Input your debt details: Once you’ve found a suitable debt consolidation calculator, input your debt information into the calculator’s fields. Enter the outstanding balance, interest rate, minimum payment, and any other relevant information for each debt you wish to consolidate.
4. Enter consolidation loan details: Next, enter the details of the consolidation loan you are considering. This includes the loan amount, interest rate, loan term, and any associated fees or charges. If you’re unsure about these details, you may need to consult with a lender or financial advisor.
5. Review the results: After inputting all the necessary information, the debt consolidation calculator will generate results based on the data provided. It will typically provide you with a summary of your current debts and the projected outcome if you were to consolidate them. The results may include information such as the total monthly payment, the total interest paid, the time it would take to pay off the consolidated loan, and potential savings compared to your current situation.
6. Evaluate your options: Carefully review the results and compare them to your current debt situation. Consider factors such as the total cost of the consolidation loan, the monthly payment amount, the interest savings, and the time it would take to become debt-free. This will help you determine if consolidating your debts is a suitable option for your financial situation.
7. Explore alternative scenarios: One advantage of using a debt consolidation calculator is that it allows you to explore different scenarios. You can adjust the loan amount, interest rate, or repayment term to see how it impacts the overall outcome. This flexibility can help you make an informed decision about the best debt consolidation option for your needs.

Remember, a debt consolidation calculator provides estimates and projections based on the information you provide. It is important to keep in mind that the actual terms and conditions offered by lenders may vary, so consider consulting with financial professionals or lenders to get more accurate and personalized information.

Using a debt consolidation calculator can be a valuable tool in your debt management journey. It allows you to compare different scenarios and make informed decisions about consolidating your debts, ultimately helping you take steps towards financial stability.

What Does A Debt Consolidation Calculator Do?

A debt consolidation calculator is a financial tool designed to help individuals assess the potential benefits of consolidating their debts into a single loan. It performs various calculations based on the information provided by the user, offering a snapshot of the potential outcomes of debt consolidation. Here’s what a debt consolidation calculator typically does:

1. Summarizes your current debt situation: The calculator takes into account the details of your existing debts, such as outstanding balances, interest rates, minimum monthly payments, and any additional fees or charges associated with each debt. It compiles this information to provide an overview of your current debt situation.
2. Calculates total debt: The calculator adds up the outstanding balances of all your debts to determine the total amount you owe.
3. Estimates monthly payment: By considering the interest rates and terms of the consolidation loan you are considering, the calculator estimates the monthly payment amount you would need to make if you were to consolidate your debts.
4. Assesses interest savings: The calculator compares the total interest you would pay if you continue making payments on your existing debts individually with the total interest you would pay if you consolidate your debts into a single loan. It provides an estimate of potential interest savings through debt consolidation.
5. Determines the repayment period: Based on the loan term you input, the calculator determines the length of time it would take for you to repay the consolidated loan in full. This gives you an idea of how long it would take to become debt-free through consolidation.
6. Compares costs: The calculator helps you compare the costs of your current debts versus the potential costs of the consolidated loan. It considers factors such as interest rates, fees, and charges associated with both options, allowing you to evaluate the financial implications of each.
7. Provides a savings analysis: Taking into account all the calculations, the debt consolidation calculator generates an analysis that outlines potential savings you may achieve through consolidation. This analysis often includes details such as total interest savings, monthly payment amounts, and the projected timeline to repay the consolidated loan.

By using a debt consolidation calculator, individuals can gain a clearer understanding of the potential benefits and outcomes of consolidating their debts. It allows them to compare their current debt situation with the projected results of debt consolidation, enabling them to make more informed decisions about their financial management strategies.

How Can A Debt Consolidation Calculator Help With Managing Debts?

A debt consolidation calculator can be a valuable tool for managing debts effectively. Here are several ways in which a debt consolidation calculator can assist you in managing your debts:

1. Overview of your debt situation: By inputting your current debts into the calculator, you can get a comprehensive overview of your existing debt situation. It allows you to see the total amount owed, interest rates, minimum monthly payments, and any associated fees or charges. This overview helps you understand the scope of your debts and serves as a starting point for finding a solution.
2. Evaluation of consolidation options: Debt consolidation involves combining multiple debts into a single loan. A debt consolidation calculator allows you to input details of the consolidation loan you are considering, such as the loan amount, interest rate, and term. By comparing this information with your current debts, the calculator helps you evaluate whether consolidating your debts is a viable option for you.
3. Assessment of potential savings: One of the key advantages of debt consolidation is the potential for interest savings. A debt consolidation calculator estimates the total interest you would pay under your current debt situation compared to the projected interest under a consolidated loan. This assessment allows you to determine if consolidating your debts would lead to significant savings over time.
4. Comparison of repayment terms: The calculator helps you compare the repayment terms of your current debts with the consolidated loan. It provides information on the monthly payment amounts, the duration of repayment, and the total cost of each option. This allows you to assess which approach aligns better with your financial goals and capabilities.
5. Analysis of monthly payments: Managing multiple debt payments can be overwhelming and complicated. A debt consolidation calculator helps you calculate the potential monthly payment for a consolidated loan. This single payment can simplify your financial obligations, making it easier to manage and budget your monthly expenses.
6. Exploration of different scenarios: A debt consolidation calculator offers flexibility by allowing you to explore different scenarios. You can adjust variables such as loan amounts, interest rates, and loan terms to see how they impact your overall debt management. This feature enables you to compare different consolidation options and find the most suitable one for your specific needs.
7. Decision-making tool: By providing a comprehensive analysis of your debts and consolidation options, the calculator becomes a valuable decision-making tool. It helps you make informed choices about whether debt consolidation is the right strategy for your situation, and if so, which consolidation option is most advantageous.

Remember that a debt consolidation calculator provides estimates and projections based on the information you input. To get more accurate and personalized information, it’s recommended to consult with financial professionals or lenders.

Overall, a debt consolidation calculator empowers you to make well-informed decisions about managing your debts. It provides clarity, helps you compare options, and assists you in creating a more manageable and effective debt repayment plan.

What Information Is Typically Required To Use A Debt Consolidation Calculator?

When using a debt consolidation calculator, you will typically need to provide the following information:

1. Outstanding Balances: The calculator requires the outstanding balances of your current debts. This includes the total amount you owe on each individual debt that you are considering consolidating.
2. Interest Rates: You will need to input the interest rates associated with your current debts. This includes the annual percentage rate (APR) or the interest rate charged on each individual debt.
3. Minimum Monthly Payments: The calculator will ask for the minimum monthly payment required for each of your existing debts. This is the amount you are currently obligated to pay towards each debt on a monthly basis.
4. Loan Amount: To evaluate the potential benefits of debt consolidation, you will need to input the loan amount you are considering for consolidation. This is the total amount you intend to borrow to pay off your existing debts.
5. Interest Rate on Consolidation Loan: You will need to provide the interest rate associated with the consolidation loan you are considering. This is the rate at which the consolidated loan will accrue interest.
6. Loan Term: The calculator requires the loan term, which is the duration over which you will repay the consolidated loan. It is typically expressed in months or years.
7. Fees or Charges: Some debt consolidation calculators also provide fields for entering any fees or charges associated with the consolidation loan, such as origination fees or closing costs. This information helps provide a more accurate assessment of the costs involved in consolidation.

By providing this information accurately, the debt consolidation calculator can generate calculations and projections based on your specific debts and the consolidation loan you are considering. It allows you to assess the potential benefits, savings, and feasibility of consolidating your debts into a single loan.

Remember that the specific fields and requirements may vary depending on the calculator you are using. It’s important to choose a reliable calculator from a reputable source to ensure accurate results.

What Factors Does A Debt Consolidation Calculator Consider When Determining Potential Savings Or Benefits?

A debt consolidation calculator takes several factors into account when determining potential savings or benefits. These factors help provide an estimate of how consolidating your debts into a single loan may impact your financial situation. Here are the key factors considered by a debt consolidation calculator:

1. Outstanding Balances: The calculator considers the total outstanding balances of your current debts. By consolidating your debts, you will be able to pay off these balances in full, which can simplify your financial obligations.
2. Interest Rates: The calculator takes into consideration the interest rates associated with your current debts and compares them with the interest rate on the consolidation loan. It calculates the potential interest savings that can be achieved through consolidation.
3. Monthly Payments: The calculator evaluates the monthly payments required for your existing debts and compares them to the estimated monthly payment for the consolidation loan. It assesses whether consolidating your debts would result in a more manageable monthly payment or potentially reduce your monthly payment obligations.
4. Loan Term: The calculator considers the loan term or duration over which you would repay the consolidation loan. It compares this term with the projected time it would take to pay off your current debts individually. This helps determine if consolidating your debts would result in a shorter or longer repayment period.
5. Total Interest Paid: By comparing the interest paid on your current debts with the projected interest on the consolidation loan, the calculator estimates the potential total interest savings. This factor helps determine if consolidating your debts would result in significant cost savings over the long term.
6. Fees or Charges: Some calculators take into account any fees or charges associated with the consolidation loan, such as origination fees or closing costs. Including these costs in the calculations provides a more accurate assessment of the overall financial implications of debt consolidation.
7. Comparative Analysis: The calculator provides a comparative analysis that highlights the potential benefits of debt consolidation. It may include details such as the total amount saved in interest, the difference in monthly payment amounts, the projected timeline to become debt-free, and any potential cost savings.

By considering these factors, a debt consolidation calculator helps you assess the potential savings or benefits of consolidating your debts. It provides a clearer understanding of how consolidation could impact your financial situation and helps you make informed decisions regarding debt management strategies.

What Are The Benefits Of Using A Debt Consolidation Calculator?

Using a debt consolidation calculator offers several benefits when it comes to managing your debts. Here are the key advantages of using a debt consolidation calculator:

1. Financial Clarity: A debt consolidation calculator provides a clear and concise overview of your current debt situation. By inputting your existing debts, including balances, interest rates, and minimum payments, the calculator helps you visualize the full scope of your debts. This clarity empowers you to make more informed decisions about your financial situation.
2. Evaluation of Consolidation Options: Debt consolidation involves combining multiple debts into a single loan. A debt consolidation calculator allows you to input details of the consolidation loan you are considering, such as loan amount, interest rate, and term. By comparing this information with your current debts, the calculator helps you evaluate the potential benefits and outcomes of consolidating your debts.
3. Projection of Potential Savings: One of the primary advantages of debt consolidation is the potential for interest savings. A debt consolidation calculator estimates the total interest you would pay under your current debt situation compared to the projected interest under a consolidated loan. This projection helps you understand the potential cost savings you may achieve through debt consolidation.
4. Comparison of Repayment Terms: The calculator helps you compare the repayment terms of your current debts with the consolidated loan. It provides information on the monthly payment amounts, the duration of repayment, and the total cost of each option. This comparison allows you to assess which approach aligns better with your financial goals and capabilities.
5. Analysis of Monthly Payments: Managing multiple debt payments can be overwhelming and complex. A debt consolidation calculator helps you calculate the potential monthly payment for a consolidated loan. This single payment can simplify your financial obligations, making it easier to manage and budget your monthly expenses.
6. Flexibility to Explore Scenarios: A debt consolidation calculator offers the flexibility to explore different scenarios. You can adjust variables such as loan amounts, interest rates, and loan terms to see how they impact your overall debt management. This feature allows you to compare different consolidation options and find the most suitable one for your specific needs.
7. Informed Decision Making: By providing a comprehensive analysis of your debts and consolidation options, the calculator serves as a valuable decision-making tool. It helps you make informed choices about whether debt consolidation is the right strategy for your situation, and if so, which consolidation option is most advantageous.

Using a debt consolidation calculator empowers you to gain insights into your debts, evaluate potential savings, and make informed decisions about managing your finances. It enables you to explore different scenarios and find a debt consolidation solution that aligns with your goals, ultimately helping you work towards a more secure and manageable financial future.

How To Find The Best Personal Loan For You

Finding the best personal loan that suits your needs requires careful consideration and research. Here are some steps to help you find the ideal personal loan for your specific situation:

1. Assess your needs: Start by determining why you need a personal loan. Whether it’s for debt consolidation, home improvement, medical expenses, or another purpose, understanding your specific needs will help you narrow down your options.
2. Check your credit score: Your credit score plays a significant role in the loan approval process and the interest rate you may receive. Obtain a copy of your credit report and check your score. If your credit score is lower than desired, take steps to improve it before applying for a personal loan.
3. Define your loan amount and repayment term: Determine the amount of money you need to borrow and how long you will need to repay the loan. Personal loans typically range from a few thousand dollars to tens of thousands, with repayment terms ranging from a few months to several years.
4. Research multiple lenders: Take the time to research and compare different lenders, including traditional banks, credit unions, and online lenders. Look for reputable lenders with competitive interest rates, flexible terms, and positive customer reviews.
5. Compare interest rates and fees: Interest rates significantly impact the overall cost of your loan. Compare the interest rates offered by various lenders to find the most competitive option. Additionally, consider any associated fees, such as origination fees, prepayment penalties, or late payment fees, and factor them into your decision-making process.
6. Consider loan terms and flexibility: Evaluate the loan terms offered by different lenders. Look for flexibility in terms of repayment options, such as the ability to make extra payments or choose between fixed and variable interest rates. A loan with more favorable terms and repayment options can make it easier to manage and pay off your debt.
7. Review eligibility criteria: Check the eligibility requirements of each lender to ensure you meet their criteria. Lenders typically consider factors such as income, employment history, credit score, and debt-to-income ratio when determining loan approvals.
8. Read and understand the loan terms and conditions: Carefully review the loan agreement, including the terms and conditions, interest rates, repayment schedule, and any potential penalties or fees. Ensure that you understand all the terms before proceeding.
9. Seek pre-approval: Consider seeking pre-approval from multiple lenders. Pre-approval provides an estimate of the loan amount and interest rate you may qualify for without affecting your credit score. This allows you to compare offers and make an informed decision.
10. Apply for the loan: Once you have chosen the best personal loan option for you, submit your application. Be prepared to provide the necessary documentation, such as identification, proof of income, and bank statements.

Remember to borrow responsibly and only take on debt that you can comfortably afford to repay. Consider seeking advice from a financial advisor or credit counselor if you have any uncertainties or questions throughout the process.

7 Best Ways To Consolidate Debt

Consolidating your debt can be an effective strategy to simplify your finances and potentially reduce your interest rates. Here are seven of the best ways to consolidate debt:

1. Personal Loan: A personal loan is a common method of debt consolidation. You can borrow a lump sum from a lender and use it to pay off your existing debts. Personal loans typically have fixed interest rates and set repayment terms, making it easier to manage your debt with a single monthly payment.
2. Balance Transfer Credit Card: If you have high-interest credit card debt, transferring your balances to a credit card with a lower interest rate can save you money. Look for balance transfer credit cards that offer a promotional 0% interest rate for an introductory period. Take note of any balance transfer fees and ensure you can pay off the transferred balance within the promotional period.
3. Home Equity Loan or Home Equity Line of Credit (HELOC): If you own a home, you can use its equity to consolidate debt. A home equity loan allows you to borrow a lump sum at a fixed interest rate, while a HELOC provides a line of credit that you can draw from as needed. Both options use your home as collateral, so it’s important to consider the potential risks.
4. Debt Management Plan (DMP): A DMP is a program offered by credit counseling agencies. They work with your creditors to negotiate lower interest rates and create a consolidated repayment plan. You make a single monthly payment to the credit counseling agency, which distributes the funds to your creditors. DMPs are suitable for individuals with high-interest debts and struggling to make payments.
5. Debt Consolidation Loans from Credit Unions: Credit unions often offer more favorable interest rates and terms compared to traditional banks. They may have specific debt consolidation loans designed to help members manage their debts more effectively. Consider joining a credit union and exploring their loan options.
6. Retirement Account Loan: If you have a retirement account, such as a 401(k) or IRA, you may be able to borrow against it to consolidate your debts. While this option allows you to access funds quickly, it’s essential to consider the potential long-term impacts on your retirement savings, including tax implications and penalties for early withdrawal.
7. Debt Consolidation Companies: Debt consolidation companies specialize in helping individuals consolidate their debts. They negotiate with your creditors to reduce interest rates or create a repayment plan. It’s crucial to research and choose a reputable debt consolidation company to ensure they have your best interests in mind.

When considering any debt consolidation method, carefully evaluate the terms, interest rates, fees, and potential impact on your overall financial situation. It’s also beneficial to seek guidance from financial professionals or credit counselors who can provide personalized advice based on your specific circumstances.

Can Debt Consolidation Hurt Your Credit Score?

Debt consolidation itself does not directly hurt your credit score. In fact, it can potentially have a positive impact on your credit score over time. However, there are certain factors to consider that may indirectly affect your credit score during the debt consolidation process. Here’s what you need to know:

1. Credit Inquiry: When you apply for a new loan or credit card to consolidate your debts, the lender will typically perform a credit inquiry. This inquiry can result in a small, temporary decrease in your credit score. However, the impact is generally minimal and typically recovers within a few months.
2. Closing Credit Accounts: As part of the debt consolidation process, you may choose to close some of your existing credit accounts. Closing accounts can affect your credit utilization ratio, which is the amount of credit you’re using compared to your total available credit. A higher utilization ratio can negatively impact your credit score. To mitigate this, consider keeping your old accounts open but inactive after consolidating the debts.
3. Opening New Accounts: If you open a new loan or credit card to consolidate your debts, it adds a new account to your credit history. Initially, this may slightly lower your average account age, which can have a small impact on your credit score. However, as you make on-time payments and the new account ages, it can positively impact your credit score over time.
4. Payment History: Debt consolidation can help you manage your debts more effectively and make consistent payments. Making on-time payments is crucial for maintaining and improving your credit score. By consolidating your debts into a single payment, you can simplify your finances and reduce the chances of missing payments.
5. Credit Mix: Creditors typically prefer to see a diverse mix of credit types on your credit report, such as credit cards, loans, and mortgages. When you consolidate your debts, it may affect your credit mix, but the impact is generally minor compared to other credit factors.

It’s important to note that while debt consolidation itself may not directly hurt your credit score, the way you manage your debts after consolidation will ultimately determine the impact on your credit. To maintain or improve your credit score, make timely payments, avoid accruing new debts, and practice responsible credit management.

If you’re concerned about the potential impact on your credit score, consider consulting with a financial advisor or credit counselor who can provide personalized guidance based on your specific situation.

What Should Your Credit Score Be For Debt Consolidation?

There is no specific credit score requirement for debt consolidation as different lenders and consolidation options may have varying criteria. However, having a good credit score can increase your chances of qualifying for favorable terms and interest rates. Here are some general guidelines regarding credit scores and debt consolidation:

1. Good to Excellent Credit Score: Typically, a credit score of 670 or higher is considered good, while a score of 740 or higher is considered excellent. Lenders often prefer borrowers with good to excellent credit scores as they demonstrate a history of responsible credit management. With a higher credit score, you may have access to better interest rates and loan terms when seeking a debt consolidation loan.
2. Lower Credit Scores: If you have a lower credit score, it may still be possible to obtain a debt consolidation loan. However, you may face challenges in securing favorable terms or may be offered loans with higher interest rates. In such cases, it’s crucial to carefully evaluate the terms and assess whether the consolidation loan would still provide a benefit in terms of simplifying your payments or reducing interest rates compared to your existing debts.
3. Alternative Options: If your credit score is below the desired range for traditional debt consolidation options, you can explore alternative methods such as a debt management plan (DMP) offered by credit counseling agencies. DMPs do not rely on credit scores and may be suitable for individuals struggling with high-interest debts.

It’s important to note that while a good credit score can be advantageous, it’s not the sole determining factor for debt consolidation. Lenders also consider other factors such as income, debt-to-income ratio, employment stability, and overall financial health when evaluating loan applications.

If your credit score is not currently within the desired range, consider taking steps to improve your credit over time. This includes making timely payments, reducing debt balances, and addressing any errors on your credit report. Improving your credit score can increase your chances of qualifying for better debt consolidation options in the future.

Ultimately, it’s advisable to shop around and compare offers from multiple lenders to find the best debt consolidation option that suits your needs and financial situation, regardless of your current credit score.

When Is Debt Consolidation Not A Good Idea?

While debt consolidation can be a helpful strategy for managing debts, it may not always be the best solution for everyone. Here are some situations when debt consolidation may not be a good idea:

1. Unstable Financial Situation: If you are facing a highly unstable financial situation, such as frequent job changes, uncertain income, or ongoing expenses that exceed your income, debt consolidation may not be the right choice. Consolidating your debts won’t address the underlying financial challenges, and you may struggle to make the consolidated loan payments.
2. Excessive Spending Habits: Debt consolidation is not a quick fix for overspending or living beyond your means. If you haven’t addressed the root cause of your debt, such as poor budgeting or excessive spending habits, consolidating your debts may only provide temporary relief. Without a change in spending behavior, you could end up accumulating more debt alongside the consolidated loan.
3. High Debt-to-Income Ratio: If your total debt level is significantly higher than your income, it may be difficult to qualify for a consolidation loan with favorable terms. Lenders consider your debt-to-income ratio when evaluating loan applications, and a high ratio indicates a higher risk of default. In such cases, it’s crucial to address your debt through alternative methods, such as budgeting, negotiation with creditors, or seeking assistance from credit counseling agencies.
4. Risking Collateral: Some debt consolidation options, such as home equity loans or using retirement accounts, require collateral. If you’re unable to make payments on the consolidated loan, you risk losing your collateral, such as your home or retirement savings. Carefully consider the potential consequences before using collateral for debt consolidation.
5. Lower Interest Rates on Current Debts: If your existing debts already have low interest rates, consolidating them may not provide significant interest savings. It’s important to compare the interest rates and terms of your current debts with the consolidation loan to determine if consolidation would truly benefit your financial situation.
6. Potential Loss of Benefits: Certain types of debts, such as student loans or government-backed loans, may offer benefits or protections that would be forfeited upon consolidation. Before consolidating such debts, thoroughly understand the potential loss of benefits, such as loan forgiveness, deferment options, or income-driven repayment plans.

Remember, debt consolidation is not a one-size-fits-all solution. It’s essential to carefully evaluate your financial circumstances, consider alternative debt management options, and seek professional advice if needed. A financial advisor or credit counselor can provide personalized guidance based on your specific situation and help you make an informed decision.

What Is The Average Interest Rate On A Debt Consolidation Loan?

The average interest rate on a debt consolidation loan can vary depending on several factors, including your credit score, the lender, the loan amount, and the loan term. Generally, debt consolidation loans may have interest rates ranging from around 5% to 36%.

Here are some key points to consider regarding interest rates on debt consolidation loans:

1. Good to Excellent Credit: Borrowers with good to excellent credit scores (typically 670 or higher) are more likely to qualify for lower interest rates. Lenders view borrowers with higher credit scores as less risky and may offer them more favorable rates.
2. Loan Type: The type of loan you choose for debt consolidation can impact the interest rate. For example, personal loans and home equity loans may have different interest rate ranges. Personal loans are unsecured and typically have higher interest rates, while home equity loans are secured by your home and may offer lower interest rates.
3. Fixed vs. Variable Interest Rates: Debt consolidation loans can have either fixed or variable interest rates. Fixed rates remain the same throughout the loan term, providing predictable monthly payments. Variable rates, on the other hand, can fluctuate based on market conditions, which can lead to potential changes in your monthly payments.
4. Market Conditions: Interest rates in the lending market can vary over time due to economic factors, such as inflation, monetary policy changes, and lender competition. It’s advisable to monitor the current market conditions and compare rates from multiple lenders to get a sense of the prevailing interest rates.
5. Loan Terms: The length of the loan term can affect the interest rate. Generally, shorter-term loans tend to have lower interest rates compared to longer-term loans. However, it’s important to find a balance between the monthly payment you can afford and the total interest paid over the loan term.

Remember, the average interest rate is just an approximation, and individual rates can vary significantly. It’s essential to shop around, compare offers from different lenders, and consider factors beyond the interest rate alone, such as fees, repayment terms, and the overall cost of the loan.

Additionally, your personal financial situation and creditworthiness play a crucial role in the interest rate you may be offered. Maintaining good credit, managing your debts responsibly, and improving your credit score can increase your chances of securing a lower interest rate on a debt consolidation loan.