Get Me Debt Free Accelerated Debt Payoff Calculator
Many people are giving up endless hours of their life to earn an income, only to then give up that income to cover the interest on their debt payments. A proper strategic plan can mitigate this problem.
The GetMeDebtFree.ca calculator will show you how much money and interest you could save by paying off your debts using the "rollover" method.
Now, the rollover method can be used in two different ways or a hybrid of the two. Typically, in order to pay the least amount of interest and pay the debt off as quick as possible, you will want to pay off the highest interest rate debt first, the second highest interest rate second, and so on. We can call this method the "snowball". However, some may find paying down the lowest balance debts first, regardless of the interest rate, can be more rewarding or motivating. Let's say that someone has 5 debts they need to pay off, with 3 of the debts being a moderate to high balance, yet a couple of the debts are smaller say maybe $1000. They could find that paying off these lower debts first may give them a shot in the arm so to speak, because they are seeing progress. We can call this method the "avalanche".
A way that might work for some, is to hybrid the two. Use the calculator to start paying down a couple of the lower balance debts in order to see more immediate results. Once those are paid off with a $0 balance, create a new calculator based on the snowball method, effectively paying the remaining debts down based on the highest to lowest interest rates.
In short, the purpose of the rollover method (snowball or avalanche), is such that when each debt is paid off, the freed-up payment amount from the paid off debt is then applied to the next debt in the plan, and so on until all debts are paid off. As you are about to see, the rollover method can save you a ton of money in interest charges, and get you debt free in a very short period of time.
Click for Instructions:
Instructions for Snowball method: Ordered from highest interest rate to the lowest interest rate, enter the name, current balance, interest rate and minimum payment amount for all of your debts (up to a maximum of 10 debts). Next, enter a monthly dollar amount you could add to your accelerated debt payoff plan. Then, click the "Calculate Results" button.
Instructions for the Avalanche method: Ordered from smallest balance to highest balance, enter the name, current balance, interest rate and minimum payment amount for all of your debts (up to a maximum of 10 debts). Next, enter a monthly dollar amount you could add to your accelerated debt payoff plan. Then, click the "Calculate Results" button.
The information provided by Get Me Debt Free is for illustrative purposes only and accuracy is not guaranteed. The values and figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results.