Accelerated Debt Payoff
Consolidating your debt is only half of the battle. You still need a plan to get your debt paid in full. This calculator can show you how to accelerate your debt payoff. The process is simple; just apply a portion of your consolidated loan's monthly payment savings to the consolidated loan's balance. You can save hundreds, even thousands in interest and shave years off of your loan!
Definitions
Additional cash desired after debt payoff
If you wish to take additional money out with this consolidation loan, enter the amount here. This will be added to the total outstanding debt that you have already entered.
New loan interest rate
The Annual Percentage Rate (APR) that you will pay on your new consolidation loan.
New loan term
The term, in months, for your new consolidation loan.
Amount to apply to accelerate payoff
This is an additional amount you wish to pay each month, to more quickly payoff your debt. This amount is added to your normal consolidated loan payment.
Credit cards
Enter your total credit card debt and its average interest rate, or press the "Enter Data" button to enter up to 10 credit card accounts, one on each line.
Auto loans
Click on the "Enter Data" button to input any auto loans you may have into the details page. This details page is designed to let you input your current monthly payment, the term (in months), the starting balance and the number of months you have left. It then calculates your outstanding balance and interest rate. You can enter up to three installment loans.
Other loans
Click on the "Enter Data" button to input any additional installment loans you may have into the details page. This details page is designed to let you input your current monthly payment, the term (in months), the starting balance and the number of months you have left. It then calculates your outstanding balance and interest rate. You can enter up to six installment loans.
Balances
Your total current balances for your credit cards, auto loans and other loans.
Interest rates
The average annual percentage rate you pay. This interest rate is calculated for each of the categories of debt you have including credit cards, auto loans and other installment loans. For credit cards the rate you enter is used to calculate the interest on all future credit card payments. The length of time to pay off this credit card may be much greater than calculated if you enter a low promotional interest rate that is only good for a short period of time.
Payment
This is your initial monthly payment. For credit cards, if you checked the "use credit card minimum payments" box, your monthly payment is calculated as 4% of your current outstanding balance. With the "use credit card minimum payments" box checked, your monthly payment will decrease as your balance is paid down. This can greatly increase the length of time it takes to pay off your credit cards. Uncheck this box to enter your own monthly payment that will remain the same until your balance is paid in full.
(We calculate your minimum monthly payment as 4% of your current outstanding balance. While your actual minimum monthly payment may be slightly different, this is one of the most common methods used by credit card companies to calculate minimum payments.)
Apply monthly payment savings amount
This is an additional amount you wish to pay each month, to more quickly payoff your debt. This amount is added to your normal consolidated loan payment.
Disclaimer
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
