Please be aware that this calculator is only an aproximation. It is close but can not match your actual results exactly due to the simplification of the calculations. Use this tool as a guide to help you make good decisions on how to assign your money to your debts.
This calculator is intended to give you an ESTIMATED payment schedule for your current debt. It works by taking your minimum payments plus any extra you wish to pay and showing you where the money will do you the most good. And at the same time give you an ESTIMATED monthly payment schedule. For the fastest payoff on all of your debt, it is suggested that you keep making the same TOTAL monthly payment each month. As one bill is paid off, you take that money and use it as part of your extra payment on the remaining debt.
The concept of quickly paying off or paying down your debt is to pay more than the minimum payment each month. This isn't always possible but it is always a good idea.
Deciding what to pay extra on can be a little tricky but in general, it is best to pay extra on the debt with the highest interest rates. This will save you the most money in the long run.
How this site works is you enter information about your accounts and how much you would like to pay extra each month. You can also specify what to do with the money when each account gets paid off. If at all possible, take the money you normally pay to an account and roll it over to your other accounts once it is paid off. This way your monthly payment doesn't change, but your debt starts getting paid off even faster. Using this roll over method, even if you can't pay any extra now, you will still pay off your total debt faster in the long run.
Currently, on the month that any account is paid off, the extra amount for that account is not applied to other debt right away. It isn't until the next month that the payment is rolled up into the payment on other bills. This is due to the method used to calculate each bill in sequence. This may change in the future to allow a little faster pay off process. But this small amount makes very little difference in the long run. Consider this extra amount \"party money\" on the month's when a debt is paid off.
If you are behind on credit card debt and find that you need help, you will want to contact one of the many Consumer Credit Counseling services and let them help you. They often charge a very small fee but it is normally covered through the reduced payments they can get for you. They will help you stick to a budget reduce interest paid on your cards and help you get out of debt. I make no money from any of these services and I personally used ACCC and they saved me when I got in over my head. There is never any up-front fees with these companies and they will do some initial work FOR FREE to figure out how much help they can give you.