Use this debt calculator to figure how long it will take to pay off your debt. Plus, it will also tell you the average monthly interest you will pay between now and when the debt is paid off. Tips and tricks to get out of debt are below.
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How Long Will You Take To Pay Off Debt?
Is debt haunting you day and night?
The ugly truth is debt causes stress, divorce, illness, and limits your freedom.
Sure, you want to get out of debt, but how do you do it? And, how long will it take you to pay off your debt?
Fortunately, this Debt Calculator makes the math easy. Simply input your current monthly payment, annual interest rate, amount owed, and whether you are making fixed or declining minimum payments – the calculator does the heavy lifting for you.
Identify The Cause Of Your Debt
If you’re living paycheck to paycheck, you must make more or spend less to pay off your debt. Sure that is obvious, but sometime the obvious eludes people.
What that means is debt is a personal problem masquerading in financial clothing. You think you have a financial problem but that is an illusion. Debt results from behavior. It is caused by your money habits.
The first step to get out of debt is to recognize your behavior is the problem. Likewise, recognize your behavior can be the solution. You are solely responsible and you are the only one who can fix this problem – permanently.
It’s that simple.
When you change your spending habits your financial picture will automatically reflect that change. Todd has written at length about personal responsibility and debt – take a look to learn more about how life habits and attitudes affect your spending.
Get Out Of Debt – Overview
You’re in debt. How do you get out? Here’s a quick game plan.
Our Debt Calculator is a fantastic starting point, but a more permanent solution requires these three action steps:
Do not make the mistake of going straight to the third step by trying to pay down your debts. You must first resolve the root cause – overspending – by eliminating unnecessary expenses and/or raising your income. The desire to find a quick fix is why so many debtors repeat the cycle over and over again – paying off credit cards only to run them up again.
Here’s how to get out of debt step-by-step…
Get Out Of Debt – Step By Step
Step 1: Identify The Cause
As stated above, the cause is your behavior. Your debt is caused by your habits and attitudes that determine hundreds of daily financial decisions. You must own this truth to focus your efforts on the appropriate cure.
Step 2: Implement The Cure
It’s time to apply whatever strategies are necessary to correct those habits:
Remember, the goal for this step is to spend less than you earn. When you reach this point you will have the monthly savings necessary to begin paying down your debt (as shown in the Debt Calculator above).
Step 3: Pay Down The Debt
It’s time to pay off all your debt in the most reliable, efficient way possible. This step is broken into three sub-steps to make it easy to complete:
For explanations of the debt avalanche and debt snowball methods, see the terms and definitions section below.
Take The First Step And Stick To Your Plan
Reducing debt is like dieting. You need to change your lifestyle and stick to your daily exercise to reduce weight. Sometimes taking the first step is the most difficult part – if you just start, you’ll want to complete what you started!
That doesn’t mean it’s all smooth sailing from there. You’re going to need encouragement. Support of a spouse or close family members is so very important.
The key is persistence. Work your plan and stay the course long enough to reach the goal and you too will be debt free.
Debt Calculator Terms & Definitions
Related Credit Card Calculators For Debt Payoff