Staying up to date with your finances will give you the insight needed to map out your long and short term financial goals.

One way that you can keep track is with our debt repayment calculator, which will help you understand how long it will take to pay off any money you’re considering borrowing or have borrowed or even spark the thought of a debt consolidation loan.

The calculator’s data will provide you with the information you need to take out a loan to fit your individual budget, and how to potentially save money on interest by adding additional principal payments to your repayment schedule.

Payment Plan

Current Payoff Term (Months):
Original Interest Cost:

General Info about Debt Repayment

Becoming familiar with different techniques and strategies is an important part of repaying your loan faster.

There are a few common strategies used to pay off any debt more quickly:

  1. Debt snowball – Pay your smallest loan first, while paying the bare minimum on the other loans, then roll the amount you had been paying on the smallest loan into payments on the next largest.
  2. Debt avalanche – Pay off the loan with the highest interest rate first. Once you’ve paid this off in full, move onto the loan with the next highest interest rate, and so on. This tactic can save you both time and interest payments over the life of your loans.
  3. Debt consolidation – Merge and consolidate old loans. Arrange them to be paid together in one recurring payment – ideally at a lower interest rate.  This will make your payments more manageable and the repayment schedule shorter. Since there are a few ways to consolidate debt, it could be helpful to contact CreditNinja to help you find the best solution for you.
  4. Debt management plan – If you find yourself with too much debt and little progress made towards repayment – consider contacting debt management or consolidation company that may be able to help lower your interest rate and put you back on track with repaying your loans.

Distinguishing Debt Quality – Good & Bad Debt

Any loan with a low and fixed interest rate used to buy something that can have an increase in value. For that reason, taking out money to pay off a higher interest rate debt or for student loans are considered to be “good debt.”

On the other hand, a loan taken out with high-interest rates in order to buy something that can lose value, or wear out, is considered to be “bad debt.”

Taking out a personal loan for luxury items, such as a vacation or cosmetic surgery, will give you short-term pleasure, but could come more pressing financial consequences.

The Importance of Early Additional Payments

If it is ever possible, making lump-sum payments early in your repayment plan makes a big difference to the overall quality of your balance.

Earlier loan payments typically go towards your interest more than your principal. Therefore, making larger payments than scheduled will directly decrease your remaining principal. The less principal you owe, the less interest you pay. Paying off a bigger portion of your principal early on means you will end up saving a lot of money on interest. 

To put all of this into perspective – an early lump-sum payment could drastically decrease the amount of time you’ll carry your debt.

For answers to questions you may have or information you need, don’t hesitate to contact us today or learn more about us. To learn more about your personal financial situation, you can also use our other simple to use calculators found here.