Make Years of Debt History With a Loan Payoff Calculator
Living with significant debt can be difficult, to say the least, on top of the never-ending task of paying monthly bills. Although you might feel defeated by the situation, it’s really just a financial problem with a solution you may not have thought of. You have the power to make a change in your life and permanently put an end to the madness and the crushing cycle of debt payments.
Making the bare minimum payments each month might help to momentarily ease the symptoms. The underlying issue is not resolved by this strategy, though. To find a longer-lasting solution, you must delve further and declare war on your debt.
The best way to put the big bad wolf of debt in its place for good is to become knowledgeable and assertive. Today, start by evaluating your debt using a loan payoff calculator.
The debt payoff calculator is applicable to all types of loans, both new and old. It can help you get started in the right direction with a simple and effective method for paying off your debts much more quickly while also assisting you in saving money in the process.
So, let’s examine precisely how this debt reduction tool can help you save money and shorten the length of your loans.
The standard monthly loan payments continue to be used by many people. You can reduce your debt and reduce the amount of time it takes to become debt-free by using the bi-weekly loan repayment calculator. In lieu of the customary lump sum payment made once a month, bi-weekly payments require you to make one-half of your fixed monthly loan payment every two weeks. As a result, you end up paying 13 full payments per year rather than just 12. An additional half-payment to the principal twice a year reduces interest over the loan’s life, while withdrawals from your account every other week fit comfortably with your paychecks and monthly budget. For all the specifics on how biweekly payments operate, you might need to conduct additional research.
It can result in sizable savings to make that one extra payment each year. You’ll shorten the loan’s term, pay less interest, and pay off the principal more quickly, all of which enable you to save money and increase your financial stability. Let’s say, for illustration purposes, that you have a $250,000, 30-year mortgage with a 4.25% interest rate. If you make biweekly payments instead of monthly ones, you’ll save more than $30,000 in interest over the course of the loan and pay it off 52 months sooner.
Your home is just one of many places you can save money. Check out the results after entering your car loan into a repayment calculator for auto loans. You can pay off your loan four months early and save money on interest for a new $30,000 car that is financed for 60 months at a rate of 4.15%.
Using a loan payoff calculator, you can set up simple automatic biweekly payment withdrawals and embark on your debt-free journey!
