How Long Will It Take To Solve Your Debt Problem?
The Dollar Stretcher.com 'Get Out of Debt' Course
When paying off debt, it can help to determine how long it will take to repay your debts under existing circumstances. You probably know how many months you have left on your auto loan. And, chances are you're counting the days until it's paid off. But few people know how long it would take to pay off a credit card if they paid the minimum each month and didn't make any new purchases. When you finish this lesson you'll know the answer to that question.
You'll need to do a little homework. But it's not hard. Collect the most recent statements from all your credit card and personal loan accounts. We suggest that you just include credit cards, personal loans and any loans from 401k plans. (We'll talk about your auto loans and mortgage later.)
You'll be using a calculator created by Bankrate.com. You'll be asked for the type of loan, amount of loan, minimum payment and interest rate. If your statement doesn't make it clear, contact the lender before you begin to enter data into the calculator. Simply enter your data and sit back. (note: no personal data will be asked) The calculator will do all the math for you. The calculator will suggest which debts to prioritize for any extra money you have. It will tell you how many months the plan will take.
When you've collected your statements, go to the calculator and fill in your data. When you get your answer, make a note of it. In fact, it's a good idea to print the results. Note: Due to the amount of data inputs on this calculator, it is best used on a tablet, laptop or desktop device.
Once you know how long it will likely to take to pay off your debt, it is time to make a decision whether you want to make the effort to solve your debt problem.
Take the Next Step:
- Decide if you want to make the effort to solve your debt problem.
- Understand what the future may have in store for you if you decide not to do anything about your debt.
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