Want to know what your debt freedom date is?
It is pretty easy to calculate.
I do want to say, however, that there is one prerequisite to this calculation: You must STOP signing up for more debt! If you keep adding more debt, the debt freedom date will keep moving away from you!
So, knowing that you have said NO! to debt from now on, here is how you calculate your debt freedom date.
- Download the Debt Freedom Date Calculator.
- List all of your debt information as shown in the example below. You will need your debt name, debt balance, and your current monthly payment.
- The balance of your debt balances and your payments will be totaled.
- The calculator will do the rest by dividing your total debt balance by your total monthly payments. This yields your Debt Freedom Date!
- $26,445 Debt Balance/$1,105 Total Monthly Payments = 23.9 months Debt Freedom Date
NOTE: This will get you really close to your actual debt freedom date. You might notice that we did not include interest rates. We also did not include positive financial events like pay raises, tax refunds, bonuses, money freed up from budget improvements, and selling stuff. For the average person who pursues debt freedom with much intensity, it is actually accomplished in about 2/3 of the time calculated here.
You now have your Debt Freedom Date! Post it on the refrigerator and celebrate as you see each debt disappear from your life.