California Debt Consolidation Calculator: Crush Your DTI & Save $1000s
92% of California residents overpay on debt. Use our AI-powered DTI tool to slash payments, unlock consolidation options, and save $1,000s—customized for California's financial laws.
Your Current Debts
Enter each debt you want to consolidate
Consolidation Loan Details
Enter the details of your potential consolidation loan
Fix Credit Errors to Improve Your DTI & Save More
Credit report errors can artificially inflate your DTI ratio by showing incorrect debt amounts or accounts that aren't yours. By disputing these errors, you can:
- Lower your reported debt burden
- Improve your credit score
- Use our 609 Dispute Letter Generatorto create effective dispute letters
Did You Know?
According to the Federal Trade Commission, 1 in 5 Americans have errors on their credit reports that could affect their credit scores.
Fixing these errors could lower your DTI ratio by removing incorrect debts and help you qualify for better loan terms.
Frequently Asked Questions
What is a good DTI ratio?
Most lenders prefer a DTI ratio of 36% or less, though some mortgage lenders may accept up to 43% for qualified mortgages. A lower DTI ratio indicates you have a good balance between debt and income.
How is debt consolidation different from credit repair?
Debt consolidation combines multiple debts into a single loan, often at a lower interest rate, to simplify payments and potentially save money. Credit repair focuses on fixing errors on your credit report to improve your credit score. Both can work together to improve your financial health.
Will debt consolidation hurt my credit score?
Initially, applying for a debt consolidation loan may cause a small, temporary dip in your credit score due to the hard inquiry. However, over time, consolidation can improve your score by lowering your credit utilization ratio and establishing a history of on-time payments.