Debt Consolidation vs Avalanche Calculator NZ

This calculator compares two ways to get on top of multiple debts in New Zealand: rolling them all into one consolidation loan at a lower rate, or keeping them where they are and attacking them with the avalanche method, paying the highest interest rate first. Both can work, and the right choice usually comes down to the interest rate. If you can consolidate several cards and personal loans into one loan at a rate well below your current average, and you do not stretch the term out too far, consolidation cuts the total interest and simplifies life to a single payment. The avalanche method costs nothing to set up, avoids new loan fees, and is powerful when you have the discipline to keep paying hard. You enter your total debt, your current average interest rate, the rate and term you could consolidate at, and the calculator works out the consolidation loan's monthly payment, then applies that same payment to your current debts at their average rate so the comparison is fair, and shows the total interest each path costs and the difference. Use it to decide whether consolidating is genuinely cheaper. Remember the big risk is running the cleared cards back up, which undoes the benefit entirely. This is a simplified comparison and an estimate only, not financial advice.

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Compares both at the same monthly payment; the avalanche figure assumes that payment against your current debts at their average rate. Do not re-run up cleared cards. Estimate only.