Debt Payoff Calculator - Calculatorall.com
This debt payoff calculator can be used for evaluating how you should be paying back your debts with extra payments. It tells you how much time it will take for paying off the debts with certain monthly payment amounts.
Why Pay Off Your Debts Early?
Debts can prove to be a real cause of stress and many families often have to go through a stressful time while paying them back. If you fail to manage your debts properly, things can quickly go out of your control and your life will be messed up. It is often suggested by many personal finance advisors that all debts other than home mortgages should be paid off the soonest it is possible. For some, even the home mortgages should be paid off quickly as well. However, you really need a debt payoff calculator for planning your proper debt repayment schedule. It's really wonderful to live debt-free life and that's very much achievable as well. This debt payoff calculator can really prove to be helpful for you evaluate your options for paying all your debts off.
Let's consider some advises for paying off the debts quickly:
1- Always live within your means or even below them. If you opt for a life that you can't afford, it will mess up your finances very quickly.
Setup your budget and determine if there are any unnecessary expenses. Try to simply cut down on unnecessary purchases.
2- Pay off your most expensive loans first. This will cut down the amount of interest you have to pay and the balance will be paid off very quickly.
3- Pay extra in monthly payments. Most part of the monthly payments that you make initially covers the interest only. Making extra payments will mean that you are directly paying off the balance. Most of the times, extra payments as low as $10 a month can help your cause a great deal.
Setting Up Your Debt Payoff Plan
Setting up a proper plan for your debt repayment is very important. Without a proper plan, you'll always end up paying extra towards all your debts that you may have to payback. So, here is what you need to do.
First of all, you should list down all your debts. In this list, make sure that you specify interest rate, minimum payments, and the total amount that has to be paid off.
Once you have a list of all the debts, it's time to rank all of them. Set the priority of which debts have to be paid first. The best approach here is to prioritize them from highest to lowest interest rates. The simple reason is that it will help you save a lot at the end of the day. And, once you have ordered your debts, you should make sure that you stick to it.
In the end, you should try to find sources of extra money that you can use for making extra payments towards your loans. You can think of working extra hours, starting a part-time job, or even sell different items to make some extra cash.
So, once you have the extra cash you need, payoff your first debt on the list and try to do that as quickly as possible. You can use the debt payoff calculator for determining how much you should be paying extra towards your debts for paying them off before your targeted date.
Keep paying off your debts one after the other until all the items on your list are crossed off. In the beginning, you might get a feeling that you're only paying off just one debt but as you go along, you'll end up paying all your debts pretty soon and will be completely debt-free in no time.
Once you're debt-free, start putting something into your savings. This will help you ensure that you have enough in your savings after some time and you do not have to go into debt again.
The use of debt payoff calculator is really an important part of the planning process. Just make sure that you provide appropriate information to the calculator so that the calculations being performed yield accurate results. These results can really play an important part in the planning process and help you make the most appropriate decisions towards paying off all your debts and cutting down the costs.
How This Debt Payoff Calculator Works?
This debt payoff calculator gives you the option to determine your payoff strategy for several of your loans at the same time. For each loan, you can specify the debt name, remaining balance, monthly or minimum payment, and the rate of interest. The debt payoff calculator gives you the space for 10 loans by default but if you have more of them then you can click the 'Show More Input Fields' button at the bottom to reveal more fields. You can add up to 100 different loans but most of the times the first 10 fields are enough for covering all your debts. Besides these values, that calculator requires some extra payment values as well if you're ready to make extra payments towards your loans to pay them off earlier. These values include per month, per year, or one-time payment paid on nth month. Finally, you have to select whether there will be any fixed payments or not.
Once you have entered all these values, just hit the calculate button on the debt payoff calculator and it will show you the results. The results shown by the calculator tell you exactly how much time do you need for paying off your loans and how much of total amount you will be paying during the term of your loan according to all the inputs you have provided including any extra payments. Besides, it also specifies separately as to how much interest will be included in the total payment. In the end, the debt payoff calculator shows you a tabular representation of your payback schedules for each of the loans you have provided in the input. The debts are specified in the order that you have entered them in and the information presented includes payoff length, total interest, total payments and payment schedule for each loan.
So, use this debt payoff calculator for considering different options and planning your loans' repayment. Specify your loans and their remaining balances, enter different values in extra payments section and find out which one of them suits you the best. This debt payoff calculator can really turn out to be your best partner in keeping the costs at minimum and paying off your debts quicker than ever.