Debt Calculator

Real Cost of Credit

Personal household debt in the United States averages around $15,000. Of course, this does not include the home mortgage balance. Evaluating the real cost of credit can be a great motivator for carrying out an innovative budget plan. The debt calculator at Lending Tree asks for current balances on credit card, installment, and auto loans. The interest rate on each account is also required. After computing the results, a detailed report offers a complete picture of what most consumers prefer to overlook.

• Total amount of debt
• Total borrower will pay back by making just minimum payments
• Total amount of interest lenders will receive
• The actual interest rate on the total amount of obligations

Obtaining the real long-term price of credit purchases can be the first step in motivating consumers to reduce their liabilities to creditors.

Debt Reduction Planner

The average American adult carries six credit cards. The latest statistics show that these are used for 24 percent of personal expenditures. Using a debt calculator can help consumers obtain a realistic view of their financial situation.

This debt reduction planner from CNN Money offers assistance in creating an achievable plan to trim down debt. The borrower enters financial data and sets a goal for eliminating the accounts. They can experiment by choosing 24 months, 36 months, or longer as their debt-free date. This debt calculator will inform them of the amount they must pay each month to meet their objective.

Consolidation of Debt Calculator

With over 1.7 trillion dollars in consumer debt, there is no doubt the credit industry is thriving. The need for Debt Relief has never been greater. The Eloan debt calculator helps consumers understand how much they can save by combining their bills. Debt consolidation can eliminate hefty charges on revolving credit accounts and make it easier for borrowers to eliminate their credit liabilities.

Vehicle Debt Calculator

Most people have an idea of the monthly payment they can afford for a new car. However, they are not as certain of the amount they can borrow. The Lending Tree auto loan calculator will help. It asks for information such as:

• Vehicle purchase price
• Trade allowance
• Down payment
• Sales Tax
• Fees
• Interest rate

It calculates the expected monthly payment to assist buyers in deciding if they can afford the vehicle. It also provides a graph explaining how different choices in the loan term or down payment will alter the monthly payment. In addition, a complete amortization schedule is presented.

How Decisions Affect Credit Costs

Although it is designed as an educational tool for a young adult audience, people of all ages can benefit from using this learning calculator. It offers practical examples to illustrate how decisions affect credit costs. Realistic scenarios are presented and the user must choose among expense options. After calculating the results, a report explains the number of months it will take to pay off the loan, and the real cost of repayment after adding interest charges.

Debt-to-income Ratio

For a quick gauge of personal financial health, borrowers can compute their debt-to-income ratio. A debt calculator is not necessary for obtaining this simple statistic.

1. Take the total monthly gross income.

• Gross income is the number before taxes are deducted.

2. Take the total of monthly debt

• Do not include house or rent payments, grocery costs and utility charges.

3. Divide monthly debt by gross income.

A result of over 20 percent indicates there could be financial problems if there is a slight reduction of spendable income. Over 36 percent reflects a dire monetary situation that needs to be addressed.

In Conclusion

None of the sites mentioned here require visitors to enter personal information before they can access the debt calculator. Although the results might be depressing in many cases, it is important to keep the long-term future in mind. Eliminating credit debt will eventually result in a more spendable income. If the possibility seems too overwhelming a consumer credit counseling service may help.