Often times it is easy for us to let big, scary numbers become arbitrary symbols that get lost in the back of our minds while we pray that they will disappear. It’s tempting, but it’s a bad idea–and you don’t need us to tell you that! One major way to start a plan that employs tactics more useful than crossing your fingers and avoiding the mailbox is visualizing how your debt is impacting your life. We found a simple online calculator that will help keep you motivated (and make your jaw drop). We calculated two versions of repayment and graphed our findings below. If you click on the graph, you can look at an enlarged version.The dark blue columns represent our final total loan amount if we slowly crawl through life making minimum payments, and the light blue columns represent our final total loan amounts if we start throwing stacks on stacks on stacks at our debt now. Follow this link and put your total amount of loans owed, minimum monthly payment, and length of loan as provided by your repayment plan (this number is your “dark blue” column). Now input your total loan amount, the amount YOU are expecting to pay per month (as much as possible above the minimum requirement), and the amount of years YOU want to repay the loan (this number is your “light blue” column). How do your totals compare, and which outcome do you prefer?
Check out our RESOURCES page to find more debt calculators (mortgage, credit cards, etc.)!!