How to Use a Debt Reduction Calculator

Debt reduction calculators come in a few different varieties. Some of the calculators allow you to come up with a payment plan for all of your debts so that you can pay off the debt quickly. Some debt reduction calculators show you how long it takes to pay off your debt when you pay only the minimum and how much you can save by increasing the amount that you pay each month. Regardless of the type of debt reduction calculator that you choose, they all work in the same general manner.

Instructions

1

Gather together your credit card statements and statements for any other debt you have that you want to pay down. If you only get online statements, pull them up so that you can refer to them when needed.

2

Open up your debt reduction calculator. Use one that is specialized for use in Microsoft Excel or find a free online debt reduction calculator at sites like cgi.money.cnn.com.

3

Enter in the amounts of your debts, the interest rates, monthly payments and any other information that the calculator requires. Choose your payoff plan, such as pay higher interest rates first, and click "calculate" to see the results. Different debt reduction calculators will have different options, so you may not be able to choose a payoff plan.