Do you know how much debt you have? It may surprise you that many people are clueless when it comes to the amount of their debts. They have an abstract idea, but when they sit down to use a debt consolidation loan calculator they really see how bad their situation is. The average person without a mortgage has $30,000 in debt based on credit cards and student loans. A person with a mortgage can actually have closer to $250,000 in debt on average. When you make less than $50,000 combined in two household incomes, it can seem very difficult to manage your debts.
The largest debt most people have is a mortgage, with credit cards as a close second. The debt consolidation loan calculator not only helps you figure out your current situation by telling you how much each debt will cost you, but it can then tell you how much a debt consolidation loan will help. For example when you receive a mortgage, you have a certain period to pay that off. As you pay it off you are earning interest each year on the principal amount. This means you pay out more than the actual loan was for. All of your debts with interest rates are like this.
By combining your debts and using the debt consolidation loan calculator, you can find a loan that will help you payout less per year. It also means you can pay down your debts without it costing you a great deal. If you have yet to use a debt consolidation loan calculator, you should do so. You can find a debt consolidation loan calculator online for free. It will do the complicated math for you. In the end, you can feel in control of your debts even if you decide debt consolidation is not for you. Basically, knowing your current situation is always going to help you relax, even if you do not have a lot of solutions. Remember that you are not alone, and there is more than one way to solve your debt problems besides bankruptcy or selling your home.