subject: What's A Debt Reduction Calculator And Why Do You Need One? [print this page] Author: Jeffrey Mueller Author: Jeffrey Mueller
Why You Need A Debt Reduction Calculator
Unless you're really handy with pencil, paper and math skills, you'll need a debt reduction calculator. Figuring out interest rates over time, especially ones that charge compound interest, can be nearly impossible for the mortal human being. If you thought fractions and x plus y was tricky, wait until you're trying to adjust an APR for a 20 year debt repayment plan.
A debt reduction calculator makes it as easy as just punching in the numbers. Put in your balance, interest rate and monthly payments, and it will tell you exactly how long it will take you to get out of debt. Fancier ones allow you other features as well, but even the simplest debt reduction calculator will tell you what you need to know.
With most, you can punch in other variables as well. For example, if you want to pay off your debt in 10 years at an 11% interest rate, how much should your monthly payments be? You can also find out what interest rate is most suitable, depending on how much and how long you want to pay.
A Great Negotiating Tool
A debt reduction calculator also makes a great negotiating tool. Before you negotiate or go to a consolidation service, figure out for yourself what you're capable of paying. This offers two advantages. First, you'll know what to expect. You can double check what they tell you and see it with your own eyes.
Second, it shows that you've done your homework. If you go to a consolidation service not really understanding your financial situation well yourself, they won't be as willing to help you out. Figuring out your own finances shows that you're committed to paying it off. You've given it some thought, and you've got something to bring to the negotiating table.
Where To Find One
You can get a debt reduction calculator absolutely free by downloading one from the Internet. This free tool will have everything you need to figure out your finances for the years to come. You can download a few different calculators and choose which one you like the best. An even better way to find one is to ask for a recommendation from a friend or debt reduction specialist.
With a debt reduction calculator, you can figure out your financial situation and finally see the light at the end of the tunnel. It's a great tool for anybody who's in debt.
