Well it’s that time of year again…graduation time! I feel like the school year just started, yet my family is already participating in end of school celebrations for each of my kids!
Graduation season is such an exciting time but it can often be weighed down by the enormity of student loans and other debts. So I wanted to spotlight one of our free tools that can provide significant guidance when tackling these debts – the Early Pay-Off Calculator. This tools is a HOPE-GENERATOR! This tool will get you fired up!! You’ll be able to see how a little extra money towards your debt can make a huge difference.
I have found that the Early Pay-Off Calculator is most impactful when used to calculate how much quicker a student loan, car payment, mortgage, etc., could be paid if one were to begin paying extra principal each month.
As an example, consider a $30,000 student loan financed for 10 years at 6.5% annual interest. The principal and interest payment would be $341/month.
- Pay $441/month ($100 extra), the early pay-off calculator shows that the loan would be eliminated in 7 years (34 months sooner) and save you over $3,300 in interest!
- Pay $500/month ($159 extra), the pay-off would occur in a little over 6 years and save you over $4,400 in interest.
- What if one were able to make two payments per month ($682/month)? Pay-off would occur in a little over 4 years and save you $6,500 in interest!
Don’t think it’s possible to make two payments per month? Think again! Most people could make two, three or even four payments per month if they eliminated all of their other debts! I challenge you to pull up the Early Pay-Off Calculator, punch in your numbers and discover why this tool will be one of your favorites too!
TOOL: EARLY PAY-OFF CALCULATOR
RESOURCE: I Was Broke. Now I’m Not. – This is a great resource to help you attack debt and make it leave your life!