{"id":17726,"date":"2026-11-05T11:03:59","date_gmt":"2026-11-05T11:03:59","guid":{"rendered":"https:\/\/accelaronix.in\/blogs\/?p=17726"},"modified":"2026-11-05T11:03:59","modified_gmt":"2026-11-05T11:03:59","slug":"debt-consolidation-worked-example","status":"publish","type":"post","link":"https:\/\/www.billcut.com\/blogs\/debt-consolidation-worked-example\/","title":{"rendered":"Debt Consolidation Worked Example: Three Dues, One EMI"},"content":{"rendered":"

By BillCut
Last updated: 5 November 2026<\/p>\n

This debt consolidation worked example merges three dues into one EMI and shows what changes. Consolidation can lower the monthly burden, but the total cost may rise or fall depending on rate and tenure. The only way to know is to compare the numbers side by side.<\/p>\n

Every figure here is illustrative. The rates are assumptions for teaching and are not BillCut rates or offers. Real terms depend on the lender and your profile.<\/p>\n

What dues are we consolidating?<\/h2>\n

Imagine a borrower with three dues. To keep the maths simple, treat each as a fresh loan with the term shown.<\/p>\n
Due<\/th>Amount<\/th>Assumed yearly rate<\/th>Term<\/th>EMI<\/th>Interest<\/th><\/tr>
Credit card balance<\/td>Rs 80,000<\/td>40 percent<\/td>12 months<\/td>Rs 8,198<\/td>Rs 18,373<\/td><\/tr>
Personal loan<\/td>Rs 2,00,000<\/td>20 percent<\/td>24 months<\/td>Rs 10,179<\/td>Rs 44,300<\/td><\/tr>
Small app loan<\/td>Rs 50,000<\/td>30 percent<\/td>12 months<\/td>Rs 4,874<\/td>Rs 8,492<\/td><\/tr>
Total<\/th>Rs 3,30,000<\/th><\/th><\/th>Rs 23,251<\/th>Rs 71,165<\/th><\/tr><\/table>\n

Today the borrower pays about Rs 23,251 a month across three due dates. Total interest over the terms is about Rs 71,165.<\/p>\n

What if all three are merged into one loan?<\/h2>\n

Assume one consolidation loan of Rs 3,30,000 at an assumed 18 percent a year. Here are two tenures.<\/p>\n
Option<\/th>EMI<\/th>Interest<\/th>Change in monthly outgo<\/th>Change in total interest<\/th><\/tr>
24 months<\/td>Rs 16,475<\/td>Rs 65,399<\/td>Lower by Rs 6,776<\/td>Lower by Rs 5,766<\/td><\/tr>
36 months<\/td>Rs 11,930<\/td>Rs 99,490<\/td>Lower by Rs 11,321<\/td>Higher by Rs 28,325<\/td><\/tr><\/table>\n

The 24 month plan helps on both counts here. The monthly outgo falls by about Rs 6,776 and total interest falls by about Rs 5,766. The 36 month plan gives much more monthly relief but costs about Rs 28,325 more in interest than staying with the three dues.<\/p>\n

What does this example teach?<\/h2>\n