ADD ALL YOUR DEBTS IN ONE PLACE
SEE YOUR TOTAL DEBT AND INTEREST OWNED
ADD HOW MUCH EXTRA YOU CAN PAY OFF
SEE HOW MUCH INTEREST YOU WILL SAVE
Find out how much much money and time you can save if you either increase the amount of your monthly payment or adding any extra funds you have. Debt calculator helps you identify the debts that cost you the most in interest. Not all debt is created equally.
As an example, you may have a mortgage interest rate of 1.99%, auto loan of 4.99% and a credit card at 18.99%. While, it maybe that the 18.99% (Credit Card) is the highest interest rate and therefore, should be paid off first, it may not always be the case. A mortgage of $250,000 at 1.99% interest rate with $2,500 monthly payment carries a total interest of $23,576. The auto loan with a balance of $10,500 with monthly payments of $299 has a total interest of $874, while your credit card at 18.99% with a balance of $950 with $60 monthly payment yields a total interest of $152.32. Therefore, if you had an extra $500, your best choice is to pay off your credit card therefore saving $119.50 in interest followed by Mortgage which will save you $99.97 while adding the extra $500 towards your auto loan would only save you $84.32.
While, this math maybe too confusing for people to calculate, especially on a monthly/weekly basis, Pay Off Debt makes it easy for you!
HOW TO USE DEBT PAYOFF CALCULATOR
- Begin by downloading the Pay Off Debt Calculator App on either iOS or Android stores.
- Start by adding all your debts in one place. All you need to know is the frequency of your payments, current balance, interest rate and your payment amount on a monthly/weekly (or other frequency) basis. All this information is found on your monthly statement.
- This will display a quick summary of all your debts in one place and all the interest that you owe.
- Reduction opportunities found at the bottom of the screen allows you to input either one time extra fee (perfect for Christmas Bonus) or input the amount you can afford to increase payments. Hint, even $10 a month can go a long way to save you extra interest to ensure that you get out of debt early.
- See either the total interest saved or time saved on the loan by either adding extra one time funds or increasing your ongoing payments.
- Update any changes to your loan and current balance on an ongoing basis to see the latest debt position.
TIPS ON PAYING OFF DEBT FASTER
The average American has $90,000 in debt, another stat shows that 80% of Americans have some sort of debt. While stats all differ and some are useful some are not we can all agree being in debt sucks. So what are some ways you can get out debt faster?
- Keep track of all your debts. A good way is to use a debt repayment calculator, such as a the Pay Off Debt App.
- Add any extra funds you have towards the debt that can save you the most interest or help you pay off different debts. Remember, even an extra $10 a month, can mean months off certain debts.
- Increase your income, while this maybe the hardest part of debt repayment, but there are ways to do so. Some ways you can generate income can include joining gig economy, adding to overtime or even hosting a garage sale.
- Analyze your spending, do you really need that $5 latte daily? Cutting expenses maybe difficult in a time of increased inflation but it can speed up your debt payoff.