Debt Reduction Calculator
This debt reduction calculator figures how long it will take to get out of debt and how much money and time you save by adding a fixed amount of additional money to every payment.
We also offer a debt snowball calculator showing you how to get out of debt even faster using the rollover method, and we have 10 other debt and credit card calculators here. One of these is certain to fit your debt reduction needs.
Debt Reduction Calculator
Will I ever be debt free? Experts in financial management claim that living a debt-free life is a myth, but living a life with minimal debt is not. Looking for ways to get out of the debt trap while fighting the lure of luxuries presented to us every step of the way is easier said than done. How long does it take to be out of debt or to live with the least worry on repaying an old debt? These can be solved by using a debt reduction calculator — a simple tool that comes in handy while critically analyzing how cutting back on small treats, can prove to be rewarding in the long run.
Use Your Extras
Most of my earnings already go for loan repayment. The fact that you can still afford to buy the latest gadget every time a new version comes out in the market is proof that you have more than what you need. These are your extra resources that can be funneled in as additional amount to your regular loan repayment.
Be Wary Not Sorry
Start by looking at the way you spend your extra resources. Be on guard on things that you may have been splurging on unnecessarily. It could be a weekly trip to the bowling alley that costs you $70 each time, your Friday steak treat drawing a minimum of $40 from your pocket, or splurging on your monthly designer wear shopping, extracting a whopping load of money from your bank account. Missing a treat or two won’t hurt. It will in fact, put you in a position to enjoy life better in coming days.
Calculate, Cut, Curb
Make a list of the little luxuries that you are willing to forego or do less frequently. Calculate the amount of money you can set aside. Keeping the debt reduction calculator on hand, add this amount to your existing loan payment.
By simply adding a $100 to your payment every month, not only will the interest cost come down, your repayment time shortens and, your credit worthiness be established. It would, more than anything else, keep you on the path towards your goal of a life of minimal debt, minimal worry. Make this your goal and keep it posted on a place where you can see it every day. This would serve as a motivation to get you on to the next step.
Start cutting on your little luxuries and begin enjoying other things that you may have overlooked before. A walk in the park is equally enjoyable as throwing balls at the alley. A backyard barbecue with your friends is much more pleasurable, enjoyable and, affordable! Going through your already overflowing wardrobe may spark an idea that you can use in setting up a trend of your own. An update of your existing gadget may not be necessary after all.
Curb the habit and form a pattern. Put in a monthly amortization schedule and see for yourself how soon your debt repayment ends. When you begin going through this exercise, it will slowly grow on you without realizing that you are actually planning a much better future, without much effort and at the same time enjoying the best things in life, which may not necessarily be free, at a fraction of the cost.
A Blueprint For A Worry-Free Future
Working out your debt repayment using a calculator actually tells you the exact amount of time and money saved. The extra savings obtained from the return of investment of your extra payment translates into a guaranteed tax-free annual return. And the sense of accomplishment of paying off your debt ahead of time by just scrimping a little on the side is something that no amount of money can buy.
Debt Reduction Terms And Definitions
Related Credit Card Calculators For Debt Payoff