If you read my article yesterday on how to Calculate your Payoff, then you are ready to begin you own debt reduction plan.
Of course, not all of us are very good at math. In addition, interest configurations can be extremely complicated especially when you consider all the compounding that occurs. Therefore, I wanted to share a cool tool I found on the Internet to help.
It is from the website WhatsTheCost.com. They call it their snowball calculator, because that is their term for paying off your debts in the correct order. Their concept is similar to my recommendation to pay off the most costly debts first – those with the most interest. Still, they do allow you to select which way you prefer to go… either pay off the high interest first or the lowest debt amount.
Once you have inserted your debts, the calculator provides you with some interesting statistics. It will tell you how long you can expect it to take to pay off all your debt and you total interest costs with your current plan.
After their brief summary, they then provide you with a table you can print and keep with your current budget. You can actually follow their exact recommended payment plan to pay off your debt without additional thought.
With this calculator, you can input up to twenty different debts – this should be enough for most anyone! It also lets you indicate your budget to pay off this debt, and provides a simply way to configure it. Let this easy calculator do all the work for you. Simply follow its advice and you will be on the road to a debt free life.
In addition to this calculator, this website has a few others that may interest you. As you don’t have to provide any personal information to use this site, it can be a lot of fun to play around with their free services.
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