If you want to pay down your debt as quickly as possible, then it’s important to look at the ways different monthly payments and interest rates affect your payment schedule. The Roll-Down Credit Card Debt Calculator uses your current debt information to project various scenarios for your repayment strategy. Even with paying the same amount each month, these payments can be rolled to eliminate the highest interest rate loans first, meaning you’ll pay less money overall. When each balance is paid in full, that minimum payment is applied to the balance with the next highest interest rate. This process continues until all the loans and credit cards have been paid in full.
Roll-Down Your Credit Card Debt Calculator!
- Pay off your highest interest rate first.
- When a credit card balance is paid in full, apply its monthly payment to the balance with the next highest interest rate.
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New York, NY 10038
The Roll-Down Credit Card Debt Calculator applies two important principles for paying off credit card debt: 1) Eliminate high-interest balances first. 2) Then, when the balance is paid in full, the monthly payment is applied to the next highest interest rate. This snowball effect helps to minimize the interest burden over time, resulting in a fast-track approach to becoming debt-free. Start by entering the details of each of your credit card balances, including the current interest rates. Include all outstanding balances to see a clear picture of your current payoff timeline. The graph shows how minimum payments are a slow method for paying off the debt.
Next, use the calculator to see how the roll-down strategy can be used for your debt payment. When the highest interest balance is paid in full, the calculator applies the monthly payment to the next credit card with the highest rate. This roll-down amount increases with time as balances are paid in full. Eventually, you’ll have rolled through all the debt to reach the point of being debt-free. The calculator displays an easy-to-understand graph that gives you a side-by-side comparison of your current payoff schedule to a potential roll-down payoff method. Adjust the numbers to see the potential solutions to help you achieve financial freedom as quickly as possible. The right financial strategy can reduce the payment timeline by years and save a lot of money in interest costs.