Debt Consolidation & DSR Simulator

DSR is the percentage of your gross monthly income that goes toward debt repayments. A DSR below 25% is considered healthy by Irish lenders. Above 40% signals financial stress and may affect mortgage eligibility.

Debt consolidation combines multiple debts into a single loan with one monthly payment, ideally at a lower interest rate. This simplifies repayment and can reduce your monthly outgoings and total interest paid.

Most Irish lenders prefer a DSR below 35-40% for mortgage applications. The Central Bank's macro-prudential rules cap borrowing at 3.5x income for first-time buyers and 3x for subsequent buyers, but DSR is used alongside these rules.

Initially, a hard credit check may cause a small temporary drop. However, making consistent on-time payments on the new loan will improve your credit profile over time. Closing old credit cards after consolidation can also affect your credit utilisation ratio.

Credit cards, personal loans, store cards, overdrafts, and sometimes car loans can be consolidated. Secured debts like mortgages and student loans typically cannot be included in a standard consolidation loan.

For credit cards, minimum payment is typically 1-2% of the outstanding balance plus interest. For personal loans, it's usually a fixed amortised payment. Enter the actual minimum payment from your statement for the most accurate DSR calculation.

If your credit score is low, you may not qualify for a lower consolidation rate. In that case, focus on the debt snowball or avalanche method — paying off the highest-interest debt first (avalanche) or the smallest balance first (snowball).

Paying even €50 extra per month can significantly reduce both the payoff time and total interest. The what-if section above shows exactly how much you'd save by increasing your monthly payment.