The secret to repaying debts
quickly and saving on interest charges is to continue to pay the
same amount each month until all debts are repaid. As one debt
is paid off, apply that payment amount to another debt.
To move forward with the same
example, the current monthly payment is $850. If you pay an
additional $180 each month that’s mean $1030 of total
monthly payment, your debts will be repaid in 7 years and 10
months and you will avoid $23.617 in interest charges.
As you noticed, by simply
allocating $180 you save $23.617 meaning if you allocate more
monthly payment you will save more and more!
If you follow your Debt
Free/Reduction Plan, you will save $23,617.86 in interest which
is equivalent to 39.5% and have your debts paid off in 7 years
and 10 months and not 13 years and 2 months.
Here is a detailed summary for
the payments with the new $1030 monthly payments:
(Tip: you can copy this table
into excel sheet and do a sum for the interest and compare it to
the results mentioned above)
|
Month |
Name |
Balance $ |
Interest
paid $ |
Monthly
payment $ |
|
1-Jan |
Credit card |
3500 |
52.5 |
280 |
|
1-Jan |
Car Loan |
21000 |
175 |
250 |
|
1-Jan |
Home Loan |
36000 |
420 |
500 |
|
2-Jan |
Credit card |
3272.5 |
49.09 |
280 |
|
2-Jan |
Car Loan |
20925 |
174.38 |
250 |
|
2-Jan |
Home Loan |
35920 |
419.07 |
500 |
|
3-Jan |
Credit card |
3041.59 |
45.62 |
280 |
|
3-Jan |
Car Loan |
20849.38 |
173.74 |
250 |
|
3-Jan |
Home Loan |
35839.07 |
418.12 |
500 |
|
4-Jan |
Credit card |
2807.21 |
42.11 |
280 |
|
4-Jan |
Car Loan |
20773.12 |
173.11 |
250 |
|
4-Jan |
Home Loan |
35757.19 |
417.17 |
500 |
|
5-Jan |
Credit card |
2569.32 |
38.54 |
280 |
|
5-Jan |
Car Loan |
20696.23 |
172.47 |
250 |
|
5-Jan |
Home Loan |
35674.36 |
416.2 |
500 |
|
6-Jan |
Credit card |
2327.86 |
34.92 |
280 |
|
6-Jan |
Car Loan |
20618.7 |
171.82 |
250 |
|
6-Jan |
Home Loan |
35590.56 |
415.22 |
500 |
|
7-Jan |
Credit card |
2082.78 |
31.24 |
280 |
|
7-Jan |
Car Loan |
20540.52 |
171.17 |
250 |
|
7-Jan |
Home Loan |
35505.78 |
414.23 |
500 |
|
8-Jan |
Credit card |
1834.02 |
27.51 |
280 |
|
8-Jan |
Car Loan |
20461.69 |
170.51 |
250 |
|
8-Jan |
Home Loan |
35420.01 |
413.23 |
500 |
|
9-Jan |
Credit card |
1581.53 |
23.72 |
280 |
|
9-Jan |
Car Loan |
20382.2 |
169.85 |
250 |
|
9-Jan |
Home Loan |
35333.24 |
412.22 |
500 |
|
10-Jan |
Credit card |
1325.25 |
19.88 |
280 |
|
10-Jan |
Car Loan |
20302.05 |
169.18 |
250 |
|
10-Jan |
Home Loan |
35245.46 |
411.2 |
500 |
|
11-Jan |
Credit card |
1065.13 |
15.98 |
280 |
|
11-Jan |
Car Loan |
20221.23 |
168.51 |
250 |
|
11-Jan |
Home Loan |
35156.66 |
410.16 |
500 |
|
12-Jan |
Credit card |
801.11 |
12.02 |
280 |
|
12-Jan |
Car Loan |
20139.74 |
167.83 |
250 |
|
12-Jan |
Home Loan |
35066.82 |
409.11 |
500 |
|
13-Feb |
Credit card |
533.13 |
8 |
280 |
|
13-Feb |
Car Loan |
20057.57 |
167.15 |
250 |
|
13-Feb |
Home Loan |
34975.93 |
408.05 |
500 |
|
14-Feb |
Credit card |
261.13 |
3.92 |
265.05 |
|
14-Feb |
Car Loan |
19974.72 |
166.46 |
264.95 |
|
14-Feb |
Home Loan |
34883.98 |
406.98 |
500 |
|
15-Feb |
Credit card |
0 |
0 |
0 |
|
15-Feb |
Car Loan |
19876.23 |
165.64 |
530 |
|
15-Feb |
Home Loan |
34790.96 |
405.89 |
500 |
|
16-Feb |
Credit card |
0 |
0 |
0 |
|
16-Feb |
Car Loan |
19511.87 |
162.6 |
530 |
|
16-Feb |
Home Loan |
34696.85 |
404.8 |
500 |
|
17-Feb |
Credit card |
0 |
0 |
0 |
|
17-Feb |
Car Loan |
19144.47 |
159.54 |
530 |
|
17-Feb |
Home Loan |
34601.65 |
403.69 |
500 |
|
18-Feb |
Credit card |
0 |
0 |
0 |
|
18-Feb |
Car Loan |
18774.01 |
156.45 |
530 |
|
18-Feb |
Home Loan |
34505.34 |
402.56 |
500 |
|
19-Feb |
Credit card |
0 |
0 |
0 |
|
19-Feb |
Car Loan |
18400.46 |
153.34 |
530 |
|
19-Feb |
Home Loan |
34407.9 |
401.43 |
500 |
|
20-Feb |
Credit card |
0 |
0 |
0 |
|
20-Feb |
Car Loan |
18023.8 |
150.2 |
530 |
|
20-Feb |
Home Loan |
34309.33 |
400.28 |
500 |
|
21-Feb |
Credit card |
0 |
0 |
0 |
|
21-Feb |
Car Loan |
17644 |
147.03 |
530 |
|
21-Feb |
Home Loan |
34209.61 |
399.11 |
500 |
|
22-Feb |
Credit card |
0 |
0 |
0 |
|
22-Feb |
Car Loan |
17261.03 |
143.84 |
530 |
|
22-Feb |
Home Loan |
34108.72 |
397.94 |
500 |
|
23-Feb |
Credit card |
0 |
0 |
0 |
|
23-Feb |
Car Loan |
16874.87 |
140.62 |
530 |
|
23-Feb |
Home Loan |
34006.66 |
396.74 |
500 |
|
24-Feb |
Credit card |
0 |
0 |
0 |
|
24-Feb |
Car Loan |
16485.49 |
137.38 |
530 |
|
24-Feb |
Home Loan |
33903.4 |
395.54 |
500 |
|
25-Mar |
Credit card |
0 |
0 |
0 |
|
25-Mar |
Car Loan |
16092.87 |
134.11 |
530 |
|
25-Mar |
Home Loan |
33798.94 |
394.32 |
500 |
|
26-Mar |
Credit card |
0 |
0 |
0 |
|
26-Mar |
Car Loan |
15696.98 |
130.81 |
530 |
|
26-Mar |
Home Loan |
33693.26 |
393.09 |
500 |
|
27-Mar |
Credit card |
0 |
0 |
0 |
|
27-Mar |
Car Loan |
15297.79 |
127.48 |
530 |
|
27-Mar |
Home Loan |
33586.35 |
391.84 |
500 |
|
28-Mar |
Credit card |
0 |
0 |
0 |
|
28-Mar |
Car Loan |
14895.27 |
124.13 |
530 |
|
28-Mar |
Home Loan |
33478.19 |
390.58 |
500 |
|
29-Mar |
Credit card |
0 |
0 |
0 |
|
29-Mar |
Car Loan |
14489.4 |
120.75 |
530 |
|
29-Mar |
Home Loan |
33368.77 |
389.3 |
500 |
|
30-Mar |
Credit card |
0 |
0 |
0 |
|
30-Mar |
Car Loan |
14080.15 |
117.33 |
530 |
|
30-Mar |
Home Loan |
33258.07 |
388.01 |
500 |
|
31-Mar |
Credit card |
0 |
0 |
0 |
|
31-Mar |
Car Loan |
13667.48 |
113.9 |
530 |
|
31-Mar |
Home Loan |
33146.08 |
386.7 |
500 |
|
32 - 3 |
Credit card |
0 |
0 |
0 |
|
32 - 3 |
Car Loan |
13251.38 |
110.43 |
530 |
|
32 - 3 |
Home Loan |
33032.78 |
385.38 |
500 |
|
33 - 3 |
Credit card |
0 |
0 |
0 |
|
33 - 3 |
Car Loan |
12831.81 |
106.93 |
530 |
|
33 - 3 |
Home Loan |
32918.16 |
384.05 |
500 |
|
34 - 3 |
Credit card |
0 |
0 |
0 |
|
34 - 3 |
Car Loan |
12408.74 |
103.41 |
530 |
|
34 - 3 |
Home Loan |
32802.21 |
382.69 |
500 |
|
35 - 3 |
Credit card |
0 |
0 |
0 |
|
35 - 3 |
Car Loan |
11982.15 |
99.85 |
530 |
|
35 - 3 |
Home Loan |
32684.9 |
381.32 |
500 |
|
36 - 3 |
Credit card |
0 |
0 |
0 |
|
36 - 3 |
Car Loan |
11552 |
96.27 |
530 |
|
36 - 3 |
Home Loan |
32566.22 |
379.94 |
500 |
|
37 - 4 |
Credit card |
0 |
0 |
0 |
|
37 - 4 |
Car Loan |
11118.27 |
92.65 |
530 |
|
37 - 4 |
Home Loan |
32446.16 |
378.54 |
500 |
|
38 - 4 |
Credit card |
0 |
0 |
0 |
|
38 - 4 |
Car Loan |
10680.92 |
89.01 |
530 |
|
38 - 4 |
Home Loan |
32324.7 |
377.12 |
500 |
|
39 - 4 |
Credit card |
0 |
0 |
0 |
|
39 - 4 |
Car Loan |
10239.93 |
85.33 |
530 |
|
39 - 4 |
Home Loan |
32201.82 |
375.69 |
500 |
|
40 - 4 |
Credit card |
0 |
0 |
0 |
|
40 - 4 |
Car Loan |
9795.26 |
81.63 |
530 |
|
40 - 4 |
Home Loan |
32077.51 |
374.24 |
500 |
|
41 - 4 |
Credit card |
0 |
0 |
0 |
|
41 - 4 |
Car Loan |
9346.89 |
77.89 |
530 |
|
41 - 4 |
Home Loan |
31951.75 |
372.77 |
500 |
|
42 - 4 |
Credit card |
0 |
0 |
0 |
|
42 - 4 |
Car Loan |
8894.78 |
74.12 |
530 |
|
42 - 4 |
Home Loan |
31824.52 |
371.29 |
500 |
|
43 - 4 |
Credit card |
0 |
0 |
0 |
|
43 - 4 |
Car Loan |
8438.9 |
70.32 |
530 |
|
43 - 4 |
Home Loan |
31695.81 |
369.78 |
500 |
|
44 - 4 |
Credit card |
0 |
0 |
0 |
|
44 - 4 |
Car Loan |
7979.22 |
66.49 |
530 |
|
44 - 4 |
Home Loan |
31565.59 |
368.27 |
500 |
|
45 - 4 |
Credit card |
0 |
0 |
0 |
|
45 - 4 |
Car Loan |
7515.71 |
62.63 |
530 |
|
45 - 4 |
Home Loan |
31433.86 |
366.73 |
500 |
|
46 - 4 |
Credit card |
0 |
0 |
0 |
|
46 - 4 |
Car Loan |
7048.34 |
58.74 |
530 |
|
46 - 4 |
Home Loan |
31300.59 |
365.17 |
500 |
|
47 - 4 |
Credit card |
0 |
0 |
0 |
|
47 - 4 |
Car Loan |
6577.08 |
54.81 |
530 |
|
47 - 4 |
Home Loan |
31165.76 |
363.6 |
500 |
|
48 - 4 |
Credit card |
0 |
0 |
0 |
|
48 - 4 |
Car Loan |
6101.89 |
50.85 |
530 |
|
48 - 4 |
Home Loan |
31029.36 |
362.01 |
500 |
|
49 - 5 |
Credit card |
0 |
0 |
0 |
|
49 - 5 |
Car Loan |
5622.74 |
46.86 |
530 |
|
49 - 5 |
Home Loan |
30891.37 |
360.4 |
500 |
|
50 - 5 |
Credit card |
0 |
0 |
0 |
|
50 - 5 |
Car Loan |
5139.6 |
42.83 |
530 |
|
50 - 5 |
Home Loan |
30751.77 |
358.77 |
500 |
|
51 - 5 |
Credit card |
0 |
0 |
0 |
|
51 - 5 |
Car Loan |
4652.43 |
38.77 |
530 |
|
51 - 5 |
Home Loan |
30610.54 |
357.12 |
500 |
|
52 - 5 |
Credit card |
0 |
0 |
0 |
|
52 - 5 |
Car Loan |
4161.2 |
34.68 |
530 |
|
52 - 5 |
Home Loan |
30467.66 |
355.46 |
500 |
|
53 - 5 |
Credit card |
0 |
0 |
0 |
|
53 - 5 |
Car Loan |
3665.88 |
30.55 |
530 |
|
53 - 5 |
Home Loan |
30323.12 |
353.77 |
500 |
|
54 - 5 |
Credit card |
0 |
0 |
0 |
|
54 - 5 |
Car Loan |
3166.43 |
26.39 |
530 |
|
54 - 5 |
Home Loan |
30176.89 |
352.06 |
500 |
|
55 - 5 |
Credit card |
0 |
0 |
0 |
|
55 - 5 |
Car Loan |
2662.82 |
22.19 |
530 |
|
55 - 5 |
Home Loan |
30028.95 |
350.34 |
500 |
|
56 - 5 |
Credit card |
0 |
0 |
0 |
|
56 - 5 |
Car Loan |
2155.01 |
17.96 |
530 |
|
56 - 5 |
Home Loan |
29879.29 |
348.59 |
500 |
|
57 - 5 |
Credit card |
0 |
0 |
0 |
|
57 - 5 |
Car Loan |
1642.97 |
13.69 |
530 |
|
57 - 5 |
Home Loan |
29727.88 |
346.83 |
500 |
|
58 - 5 |
Credit card |
0 |
0 |
0 |
|
58 - 5 |
Car Loan |
1126.66 |
9.39 |
530 |
|
58 - 5 |
Home Loan |
29574.71 |
345.04 |
500 |
|
59 - 5 |
Credit card |
0 |
0 |
0 |
|
59 - 5 |
Car Loan |
606.05 |
5.05 |
530 |
|
59 - 5 |
Home Loan |
29419.75 |
343.23 |
500 |
|
60 - 5 |
Credit card |
0 |
0 |
0 |
|
60 - 5 |
Car Loan |
81.1 |
0.68 |
81.78 |
|
60 - 5 |
Home Loan |
29262.98 |
341.4 |
948.22 |
|
61 - 6 |
Credit card |
0 |
0 |
0 |
|
61 - 6 |
Car Loan |
0 |
0 |
0 |
|
61 - 6 |
Home Loan |
28656.16 |
334.32 |
1030 |
|
62 - 6 |
Credit card |
0 |
0 |
0 |
|
62 - 6 |
Car Loan |
0 |
0 |
0 |
|
62 - 6 |
Home Loan |
27960.48 |
326.21 |
1030 |
|
63 - 6 |
Credit card |
0 |
0 |
0 |
|
63 - 6 |
Car Loan |
0 |
0 |
0 |
|
63 - 6 |
Home Loan |
27256.69 |
317.99 |
1030 |
|
64 - 6 |
Credit card |
0 |
0 |
0 |
|
64 - 6 |
Car Loan |
0 |
0 |
0 |
|
64 - 6 |
Home Loan |
26544.68 |
309.69 |
1030 |
|
65 - 6 |
Credit card |
0 |
0 |
0 |
|
65 - 6 |
Car Loan |
0 |
0 |
0 |
|
65 - 6 |
Home Loan |
25824.37 |
301.28 |
1030 |
|
66 - 6 |
Credit card |
0 |
0 |
0 |
|
66 - 6 |
Car Loan |
0 |
0 |
0 |
|
66 - 6 |
Home Loan |
25095.65 |
292.78 |
1030 |
|
67 - 6 |
Credit card |
0 |
0 |
0 |
|
67 - 6 |
Car Loan |
0 |
0 |
0 |
|
67 - 6 |
Home Loan |
24358.43 |
284.18 |
1030 |
|
68 - 6 |
Credit card |
0 |
0 |
0 |
|
68 - 6 |
Car Loan |
0 |
0 |
0 |
|
68 - 6 |
Home Loan |
23612.61 |
275.48 |
1030 |
|
69 - 6 |
Credit card |
0 |
0 |
0 |
|
69 - 6 |
Car Loan |
0 |
0 |
0 |
|
69 - 6 |
Home Loan |
22858.09 |
266.68 |
1030 |
|
70 - 6 |
Credit card |
0 |
0 |
0 |
|
70 - 6 |
Car Loan |
0 |
0 |
0 |
|
70 - 6 |
Home Loan |
22094.77 |
257.77 |
1030 |
|
71 - 6 |
Credit card |
0 |
0 |
0 |
|
71 - 6 |
Car Loan |
0 |
0 |
0 |
|
71 - 6 |
Home Loan |
21322.54 |
248.76 |
1030 |
|
72 - 6 |
Credit card |
0 |
0 |
0 |
|
72 - 6 |
Car Loan |
0 |
0 |
0 |
|
72 - 6 |
Home Loan |
20541.3 |
239.65 |
1030 |
|
73 - 7 |
Credit card |
0 |
0 |
0 |
|
73 - 7 |
Car Loan |
0 |
0 |
0 |
|
73 - 7 |
Home Loan |
19750.95 |
230.43 |
1030 |
|
74 - 7 |
Credit card |
0 |
0 |
0 |
|
74 - 7 |
Car Loan |
0 |
0 |
0 |
|
74 - 7 |
Home Loan |
18951.38 |
221.1 |
1030 |
|
75 - 7 |
Credit card |
0 |
|
