How this number is made
Consolidation helps only if the new payment and the new interest are actually better. A longer term can lower the payment and raise the interest. This page shows both.
- Balances are the total you would pay off.
- The old payment is the sum of the payments those balances currently require.
Formula
New payment is the installment payment on the combined balance. Payment difference = old payments − new payment. Interest on the new loan = new payment × months − balance.
Worked example
With the figures already in the form, monthly payment reduced is $94.92.
Questions
What interest am I paying now?
This page does not know, because you did not enter the old rates. A lower payment is not proof of less interest.
Do I close the old accounts?
That is a credit and a behavior question. The math only compares the payments you typed.