Debt Reduction Calculator
1. Click "Add" and fill in debt details above.
2. Click "Save" to save debt to list below.
3. Repeat #1 & #2 to add all debts.
To edit: Select debt in list. Change value above. Click "Save"
To delete: Select debt in list, click "Delete"
The total of payment is ?????. At the current payment rate, the loans will be paid off in ????. monthly payments or by ???? and the total interest paid will be ??????.??.
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. This process continues until all debts are paid-in-full. Thus the total monthly payment amount remains constant or "Level".
This is the easiest reduction method to follow. It requires no change on the debt holder's part. They paid what they paid last month. The only assumption is, if the debtor could pay X amount one month then they can pay the same amount every month.
Note: On the "Current Payback" page, the "Payment Option" is set to "Minimum Payment". Therefore, the level payment amount will be the sum of all the minimum payments.
Note: This option will not available when "Loan Consolidation" or "Meet a Goal" are selected.
Note: Uncheck the "Loan Consolidation Method" to use this option.
This amount is used to pay off the loans with the highest interest rates first. Unpaid balances will continued to be financed at their current interest rates.
If you know either the payment amount or the number of periods you may enter them here:
If you know neither value, the payment amount will be calculated using the current term.
Note: Uncheck the "Level Payment Method" to use this option.
Note: This option is not available when "Meet a Goal" is selected.
Selecting this option will adjust all payments so that the loans are paid off by the above date in the most efficient way possible. This means that if some loans are paid off before this date using their current payment amount then their payments will be decreased so that they are paid-off on this date too. This results in the lowest possible over all payment required to meet the goal.
Naturally, at no time, will a loan payment be reduced below the minimum payment amount.
Note: If this method is selected then "Level Payment", "Loan Consolidation" and "Extra Payment" options are not available.
Note: Uncheck the "Selected Method" to use this option.
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 calculated 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.
Example: If making only the current payments, the debt will be paid off in 48 months while following the loan consolidation method it will be paid off in 28 months, selecting this option will show the total value of the current payments if they were invested at this interest rate between the 28th month and the 48th month. The concept here is that you'll pay down the debt faster AND build wealth by the time the debt would have been paid off under the current payment schedule.