It’s a new year and many people have made their New Year’s resolutions. If you have made the conscious decision or resolution to reduce debt in 2016, there are a few tools that can be helpful on this journey.
Tool #1: The “When will I be debt-free?” calculator calculates the date you will pay off your loans based on the amount of the loan, the interest rate, and the amount of your monthly payments. Go to http://money.cnn.com/calculator/pf/debt-free/. The debt-free calculator will also calculate how much interest you will pay while paying off the loan. By simply changing the amount of the payment by a few dollars each month, you can see how much interest and time can be saved.
Tool #2: Another useful tool for debt reduction is https://www.mint.com/. The mint.com website has lots of great free tools to help you manage your personal finances. Some of the categories offered are:
Under the Goals tab you will find additional topics such as paying off credit card debt, paying off loans, saving for an emergency, saving for retirement, saving for college, etc. You can even create a custom goal. When you choose the custom goal you are allowed to give the goal a name, category and amount. The software even allows you to upload a picture to go with the goal. Choose the date you want to reach the goal and the monthly amount to save is calculated. This is a great website for money management! Mint.com even sends you reports on your finances.
Tool #3 and #4: Fidelity.com offers budgeting and debt management calculators and tools. The savings planner helps you create a plan for paying off debt and for saving money. The budget snapshot contains a calculator that helps you look at your monthly expenses to see if you have a deficit or a surplus of funds at the end of the month. These tools can be found at: https://www.fidelity.com/calculators-tools/budgeting-debt-management.
Tool #5: The Credit Card Payoff Calculator is another calculator that can be used for getting out of debt. The calculator allows you to determine your payoff goal in months and will calculate how much you need to pay each month to reach the goal. It also calculates total interest paid on the loan. The website for the Credit Card Payoff Calculator is: https://www.mydebtsolution.com/learning-center/online-debt-tools.
Tool #6: The Debt Eliminator found at http://www.suzeorman.com/suze-tools/debt-eliminator allows you to enter debt that you have along with the minimum payment and interest on the loan. It will then calculate a summary of your debt including the average interest rate, balance, and total monthly payments. Next, it asks if you have any additional funds that can be paid on the balance monthly. Finally, you receive a plan for paying off the debt.
Tool #7: A different debt eliminator calculator at http://tcalc.timevalue.com/all-financial-calculators/personal-finance-calculators/debt-elimination-calculator.aspx gives a very detailed amortization schedule for debt reduction. Simply enter all of your debt information along with your debt payoff strategy and your debt payoff schedule and graphs will be calculated. Suggestions for different debt payoff strategies will are also given.
Check out these tools that can help you speed up the debt payoff process. Take time to find the tools that will be most helpful to you in your situation. Make paying off debt one of your financial priorities this year. You will be so glad you did!
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