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Debt

A Guide On Using Debt Payoff Calculator

A Guide On Using Debt Payoff Calculator

A Guide On Using Debt Payoff Calculator

What Is A Debt Payoff Calculator?

Worried about paying off your loan and in need of financial assistance concerning a debt payment plan? Don’t worry! Debt Payoff Calculator is here to help! The debt payoff calculator will tell you how much you need to pay each month, and will assist you to  pay off your debt by a selected payoff date.

There are three main parts of using this calculator:

Understanding of your Debt

First fill out your debt balance, the interest rate, and monthly payment amount that you are currently making on a per month basis, and hit “calculate.” There is also an “add debt” option below each module that allows you to add as many accounts as you need. The debt payoff calculator will calculate how much interest you will have to pay in total and what you need to pay off each account if you choose to stay on your current payment plan.

Sliders can help you understand what happens if you pay extra

Use the sliders to track little changes to your debt plan. Understand how paying a little extra can drastically hasten your debt payoff date and will also reduce the interest over the time. The calculator allows you to be little flexible. You can select the desired payoff date and check what future payments you need to make to be debt-free by that specified time.

Compare your debt payoff plan

After using the sliders, compare your current payment plan to the accelerated one. It is understood that if you pay off your debt early, you can save enough on your interest payments. Therefore, compare and understand which option could save you both time and money.

Final Thoughts

Living a debt free life is a truly rewarding experience. At United Financial Counselors we educate our clients about different financial management programs which could help them to pay off their debt early without filing bankruptcy or foreclosure . Remember, debt freedom contributes to building wealth and experts are making an effort to introduce new apps and tools that can help borrowers pay off their debt early.

If you are interested  in any credit counseling or debt management programs, please visit our website www.unitedcounselors.org.

Read: How Can A Financial Counselor Help You Deal With Debt?

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Posted in Debt