PayoffHarbor · A practical comparison guide

A smaller payment is only one part of the comparison.

If you already have unsecured consumer debt, compare a consolidation offer you enter yourself with your current payoff plan using the same balances and monthly budget. Look at the payment, the full estimated repayment, and how long repayment may take.

The CFPB explains that a lower monthly payment can come from paying over a longer time, which may mean paying more overall, including fees. Read the CFPB guide to consolidating credit card debt.

Compare the whole path

Three numbers belong side by side.

Debt consolidation combines multiple debts into a new loan and one payment; it does not erase what is owed, and it can cost more. See the CFPB financial terms glossary entry for debt consolidation.

Monthly payment

Compare what the current plan requires each month with the new loan payment. If the offer does not cover every listed balance, account for payments still due on the debts left behind; the loan payment by itself is not the whole monthly picture.

Total repayment

Compare all modeled payments through payoff, including estimated interest and known fees. A lower monthly amount does not by itself mean the offer costs less overall.

Payoff duration

Compare the estimated time until all the listed debt is repaid. The offer’s stated term matters, but any balance that proceeds do not cover can remain on its own payoff path.

Read the offer carefully

Enter the terms that change the comparison.

Use the written offer’s amount, APR, term, origination fee and fee treatment, plus any other known fees. Small differences in what is borrowed, withheld, or paid separately can change both proceeds and total repayment.

Offer amount: Enter the amount before an origination fee is added or withheld. Compare the cash available to pay listed debts with their current payoff balances and any entered one-time debt fees.
APR: Use the APR shown in the offer documents. The rate affects estimated interest; if the lender’s rate or other terms can change, the entered estimate may not reflect those changes.
Term: Enter the repayment term in months. A longer term can spread payments over more months, which may lower the scheduled payment while increasing the time in repayment and the total amount paid.
Origination fee and treatment: Check whether the fee is financed into the loan or deducted from proceeds. In PayoffHarbor’s estimate, a financed fee increases modeled principal; a deducted fee reduces estimated proceeds and is counted separately in the estimated total cost.
Other known fees: Enter fees you know about and include them in the total-cost comparison. The planner models these other offer fees as paid separately once, so check the lender’s documents if a fee is charged another way.

Before comparing totals

Check whether proceeds cover the balances.

When an origination fee is deducted, estimated net proceeds are the offer amount minus that fee. Compare those proceeds with the payoff balances you entered plus any listed one-time debt fees. For a like-for-like comparison, the proceeds should cover those listed amounts.

If proceeds fall short, some original debt remains. Include those residual balances and any payments still due when you compare the monthly amount, total repayment, and time to payoff. The offer loan by itself would leave part of the picture out.

Remember how interest estimates differ from statements.

The current payoff plan is an estimate from the figures entered. Many credit card issuers calculate interest daily using an average daily balance, so an estimate based on monthly APR and payment assumptions may differ from the amount on a statement. The CFPB explains how credit card interest may be calculated.

What this guide and planner can—and can’t—tell you.

Estimates based on entered terms are illustrative. They are not lender statements, binding offers, approvals, guarantees, or personalized financial advice. PayoffHarbor does not verify or endorse lenders or offers, and it does not recommend which offer to accept. A comparison is not a promise of savings, a credit-score improvement, debt forgiveness, or debt elimination. Confirm current rates, fees, fee treatment, payment, and term with the lender before making a decision.