Debt consolidation
How much should you borrow after origination fees?
Quick answer
Start with the cash needed to pay each debt in full. If the lender takes a fee from the loan, the loan must be larger than that cash need. Check the new payment and full cost before you borrow. A bigger loan covers the fee gap but adds debt to repay.
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Start with the payoff dates
- Ask each creditor for the amount needed to pay it off on the planned date.
- Add those amounts. Check whether any creditor must be paid directly.
- For a deducted fee, divide the cash need by the share of the loan you keep.
- Check that the larger loan is available and the payment fits.
Example only: for $10,000 in payoffs and a 10% deducted fee, you keep 90% of the loan. $10,000 ÷ 0.90 is about $11,111.11. That loan leaves $10,000 after the fee, before any other deduction. It still carries interest.
The amount ceiling can block the plan
In the dated study, Oportun’s loan limit was $10,000. At a 10% fee, that loan sends just $9,000. It cannot cover a $10,000 cash need on those terms.
A larger loan also carries more interest
Check the next part of your offer
Make every selected balance reach zero on paper first.
Then check the full cost. Make sure you can pay the monthly bill.