Debt Payoff Calculator

GUESS WHAT??!!?

Monthly debt payments are non-essential expenses and could be the key to unlocking your dream life!!

What are debt payments?

They are amounts owed to lenders to pay back borrowed money, usually with added interest. Once they are paid off, that debt is no longer a bill you owe; thus, debt payments are non-essential!

That doesn't mean you should stop paying those bills because you are no longer responsible for them. What that means is you should set an intentional goal to pay off any line of credit as quickly as you can so you can release those monthly payments back into your budget to save, invest, and spend as you please.

Your mortgage or rent... your electric and grocery bills – Those are essential monthly bills that you should expect to capture in your budget.

Credit cards

Car loans

Student loans

Personal loans

Medical debt

Payday loans

Business loans

Tax debt

Basically, any form of debt that can be paid off is non-essential. Even your home loan should be a long-term goal to payoff so you can retire comfortably knowing you have eliminated your largest bill.

Photo by Matthew Henry from Burst

How do you do that?

Learn how to use this debt payoff calculator.

Have you ever tried to determine how long it would take to pay off a credit card or tax debt? Well, I can assure you that paying the monthly minimum will cost you the most and keep you in debt the longest. So let's learn how to use the debt payoff calculator to achieve our debt free goals!

Current Debt Balance – Simply put, this is the amount you currently owe on the debt you want to clear. For example, if you have a credit card with a $2,000 balance, then you would enter 2000 in the current debt balance field.

Monthly Payment – This is where you should play around with how much you can pay monthly to eliminate this debt the quickest. Base this entry on a higher monthly payment than the minimum requested, which should be determined by how much more you can afford to pay on the debt.

For example, if the minimum payment is $50, you can use this calculator to see how much interest you would save (and how much quicker you could payoff the debt) if you paid $75 or even $100, instead.

Minimum Monthly Payment – This is the lowest amount of money required to pay on the account to keep it in good standing. Not paying the minimum monthly payment could result in late fees, increased interest rates, damage to credit score, and even collection actions if the nonpayment persists.

Interest Rate – This is the percentage that lenders charge for borrowing money, expressed on an annual basis. You can find the APR for debt accounts on the monthly statements, account agreement, user online account, and customer service.

Paying off debt is the new self-care.