Along with the seemingly endless task of staying on top of monthly bills, the struggle of living with sizeable debt can be disheartening to say the least. Although this situation can have you feeling defeated, it’s just a financial issue – and one that might have an answer you just haven’t considered yet. You have the ability to change your situation, put an end to the insanity and the unbearable debt payment cycle once and for all.
Making minimum monthly payments may help to relieve the symptoms temporarily. But this tactic doesn’t solve the problem below the surface. You have to dig deeper for a more permanent solution – you have to wage war on your debt.
Getting educated and aggressive is the best way to kick the big bad wolf of debt to the curb for good. Begin by assessing your loans with a loan payoff calculator today.
The debt payoff calculator works for new and existing loans of many different types. It can help get you going in the right direction with an easy and proven method for paying off your debts much sooner and helping you save money in the process.
So let’s see exactly how this debt payoff calculator can actually help you save and reduce years off your loans.
Many people simply stick with old-fashioned monthly loan payments. The bi-weekly loan repayment calculator gives you an easy way to decrease debt and shorten the time needed to achieve debt freedom. With bi-weekly payments, you make one-half of your fixed monthly loan payment every two weeks instead of paying the usual lump sum once every month. This means that you end up making the equivalent of 13 full payments per year instead of 12. Withdrawals from your account every other week fit conveniently with paychecks and your monthly budget, while an additional half-payment twice a year toward principal shrinks interest over the life of the loan. You could need to do further research for all the specifics on how bi-weekly payments work.
That one additional payment per year can add up to sizeable savings. You’ll reduce the life span of your loan, cut back the amount of interest you pay and reduce principal faster, which helps you save money and build financial security. For instance, let’s say you have a $250,000, 30-year mortgage with an interest rate of 4.25%. If you pay bi-weekly instead of monthly, you’ll keep more than $30,000 in interest over the life of the loan and repay the loan off 52 months ahead of schedule.
The possibilities for saving don’t stop with your home. See what happens when you plug in your car loan to an auto loan repayment calculator. For a new $30,000 car financed for 60 months at an interest rate of 4.15%, you can pay off your loan four months early and save on interest.
With a loan payoff calculator, you can arrange easy automatic bi-weekly payment withdrawals and start on the path to debt freedom!