Debt Consolidator

Discover if it's worth consolidating your scattered debts (credit card revolving, special check, and personal loans) into a single, cheaper financing option (such as assigned credit or collateralized loan). See the monthly relief in your wallet.

Quick Scenarios:

Typical Bank Debts Small Balances (Card/Store) High Debt

Debt 1 (e.g., Credit Card)

Outstanding Balance

Interest Rate

% p.m.

Current Installment

Debt 2 (e.g., Special Check)

Outstanding Balance

Interest Rate

% p.m.

Current Installment

Debt 3 (e.g., Personal Loan)

Outstanding Balance

Interest Rate

% p.m.

Current Installment

Consolidated Credit Proposal

Consolidation Interest Rate

% p.m.

Average rate for assigned or collateralized loans.

Repayment Term

months

Fill in your debt balances and click on Simulate Consolidation to analyze the proposal.

$ 0.00

Total Financed (New Debt)

$ 0.00

Monthly Cash Flow Savings

$ 0.00

Total Interest Saved

$ 0.00

Current Total Monthly Payment

$ 0.00

New Single Installment

0.00%

Current Weighted Average Interest Rate

Debt Balance Composition

Interest Expense Comparison (USD)

Cash Flow Schedule and Comparative Summary

Scenario	Debt Balances	Average Interest Rate	Monthly Payment	Total Paid Over Term	Total Interest Cost

What is Debt Consolidation and how does it relieve your budget?

Debt Consolidation involves taking out a new loan with lower interest rates to pay off all existing high-interest debts (such as credit card revolving, special check, or personal loans) at once. Instead of paying multiple monthly installments with different due dates and high interest rates, the investor or worker will only owe one creditor with a single, reduced installment.

Why are credit card and special check interest rates so dangerous?

In Brazil, credit card revolving interest rates often exceed 14% per month (~400% per year) and special check interest rates are close to 8% per month (~150% per year). With compound interest, a small debt can double in size in just a few months. Credit lines like assigned loans (payroll deduction) or collateralized loans (e.g., home equity or vehicle) have significantly lower interest rates (usually between 1.5% and 2.5% per month), making them ideal for debt consolidation.

Immediate financial benefits

Monthly Cash Flow Relief: The sum of minimum installments and monthly payments is drastically reduced, freeing up space in the household budget to cover basic expenses.
Reduced Accumulated Interest: The lower composite rate ensures that a much larger portion of your monthly payment is used to amortize the principal amount of the debt, rather than just covering interest.
Mental and Practical Organization: Avoid forgetting due dates and the risk of new late fees (fines and penalties).

Frequently Asked Questions

No. Consolidation only restructures your debt, transferring your balances to a new, cheaper credit line. The total debt remains active, but under much healthier and easier-to-pay financial conditions.

The best credit lines in the Brazilian market in terms of low interest rates are: 1) Assigned Loan (for retirees, social security beneficiaries, public servants, or employees of affiliated private companies); 2) Collateralized Loan (Home Equity); 3) Vehicle Collateralized Loan; 4) Credit Portability directly to banks that offer competitive rates.

The most important precaution is changing consumption habits. Consolidating debts and freeing up credit card and special check limits can give a false sense of "having money left over." If the user continues to spend beyond their budget, they risk becoming indebted again on their credit cards and ending up with double debt (the new consolidation loan plus new credit card bills).