The amount you can save with a debt consolidation loan depends on your total credit card or loan balance, your current interest rate and your new interest rate.

For example, let’s say you owe $10,000 on a credit card with a 20% APR and a $300 monthly minimum payment. If you can consolidate to a personal loan with a three-year term and a 7.49% interest rate, you could save $3,521.64 over the life of the loan. You’ll also pay off the loan one year sooner.

In general, you can save more money by choosing the shortest term possible. Shorter terms usually have lower interest rates than longer terms.