Debt Calculator

How do I get out of debt?

The Debt Elimination Calculator answers this question by recommending how you can get out of debt in the shortest possible time and/or with the lowest interest charge. This is achieved without necessarily increasing the total monthly payment. This adviser will consider several different payment plans and it will show you which plan results in the fastest payoff with the lowest amount of interest being paid.

List of Debts

Current Plan

Pick-a-Plan

New Plan

Analysis

Click image to view larger screen.

We want to stress, particularly to those that are looking to get out of debt, it is possible to eliminate debt in less time and at a lower cost without increasing your monthly payments. How is this possible? By understanding how debt works. Or more accurately, how loans work. And by more prudent money management. We at Pine Grove Software, LLC have no vested interest in selling you anything beyond this software. We don't sell advise. We don't offer loans. We don't collect fees. It's up to the debtor and the debtor alone if they want to take the time to understand these money management techniques and, more importantly, to use them.

Like all of our calculators, this calculator is simple and straight forward to use. You gather up some basic information about all of your debts — the balance outstanding, the current interest rate and the minimum payment for each. You enter this information into the calculator (See "List of Debts" image). The Debt Reduction & Elimination Calculator, will consider all the debts and create a personalized debt reduction plan (See "New Plan" image).

Debt Reduction Calculation Methods

There are generally four ways recognized by financial professionals for tackling a debt problem. Our Debt Reduction Calculator lets you analyze all of your debts using each of the four methods (See "Pick-a-Plan" image). You'll pick what method is best for you and your circumstances.

1. Level Payment Method
   • The total payment amount remains constant until all debts are paid off. As one debt is paid-in-full, its payment amount is rolled over to pay off another debt. The process continues until all debts are paid-in-full. Thus, the total monthly payment amount remain constant or "Level".
2. Loan Consolidation Method
   • Create a plan for refinancing some or all of the debts with a new loan. The new loan can be for any amount at any interest rate.
3. Extra Payment Method
   • In addition to OR instead of, the level payment option or the loan consolidation option, extra payments can be made which decreases the loan balance and reduces the interest paid and shortens the overall term. You can select what months to make an extra payment and for how much.
4. Meet a Goal Method
   • Create a payment plan that will have all loan balances paid off by a particular Month/Year.

The reinvestment feature gives you the ability to do further analysis. After one of the debt reduction methods is applied to the total debt, the loans will be paid off earlier than if just the current payment or minimum payment schedule were followed. Once the loans are paid off, the monies being used to pay the debt can be invested. This option allows you to enter your personal average investment rate of return. It will be used to calculate the gain if the payments were invested for the period of time between the early pay-off date and the pay-off date if just the current payments were made.

Naturally, all these methods and options are explained in much greater detail in the software's "Help".

This calculator is also well suited for those that offer financial advise. You are able to create an unlimited number of personalized plans for your clients and save them for future review. You and your client will be able to monitor their results and how closely they are able to adhere to the plan.