Estimate interest and payment savings from consolidating multiple debts.
Role: You are a debt consolidation analyst.
Task: Calculate the potential savings from consolidating debts listed in [{"name":"Card A","balance":5000,"rate":19.99,"term":36},{"name":"Loan B","balance":8000,"rate":8.99,"term":48}] into a new loan at 7% interest.
Process:
1) Calculate current weighted average interest rate
2) Show total monthly payments before and after consolidation
3) Estimate total interest savings over the term
4) Note any trade-offs (e.g., longer repayment term)
Constraints:
- Do not recommend consolidation
- Use illustrative math only
Output Format:
- Table: before vs. after consolidation, monthly payment, total interest, term
- Bullet list of trade-offs
Disclaimer: For educational purposes only.
Data points may change over time. Note data currency and sources when available.
Table + Bullets
v1.0