Millions of Americans are worried about debt because of job loss, medical bills and declining home values. But the best way to climb out of debt is to honestly acknowledge how much debt you owe and to calculate how to pay your debt off quickly.
Four types of debt calculators
A debt-to-income calculator gives a good perspective on your financial health. This debt calculator totals your monthly debts such as a mortgage, student loans and minimum credit card payments. It compares these debts against your gross monthly income to produce a debt-to-income ratio.
If your debt ratio is high, it’s time to pay off that debt. Use a debt-pay-down calculator to figure out which debts you should pay off first based upon interest rates, how much debt you need to pay off and your income.
If you only carry credit card debt, you may want to use a credit card debt calculator. A payoff is the credit card debt calculator lets you enter the total due, interest rate and payment amount or how quickly you want to pay it off.
Need extra convincing? Do you really want to pay your credit card for the next five years? Check out the credit card debt calculator for paying the minimum amount.
The mortgage debt calculator works a little bit differently because of amortization. Bankrate.com’s amortization schedule debt calculator allows you to see how quickly you can pay off your mortgage debt by adding an extra monthly, yearly or annual payment. You could own your home free and clear more quickly by using this debt calculator.
No matter which debt calculator you choose, you’ll see a big difference in your monthly income once you learn to control your debt instead of letting it control you.