I want to pay off all my debt in four months. How do I calculate payment amounts for each debt item?

Answer 1

I could tell you to pay 25 or 30% on each one but I haven't the foggiest what kind of interest rate you have or how much you owe.. sorta key figures :)

The easiest way is to search Google for "calculate debt payments"

This site shows up first for me and would work perfectly.

http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp

It will show you what to do first.. i.e. it will automatically tell you what debt to pay off first (usually the one with the highest interest rate) You type in how much you owe, min payments, your interest rates and then tell it how quickly you'd like to pay everything off. It gives you your answer right away. Very easy.

An example I tried. 10K owed, 20% interest 4 months. It tells me I'll end up paying $250 in interest, and I should pay 2,562 per month to get it paid off in exactly 4 months.

I myself? I would simply pay the ones with the highest interest first. Pay as much as I possibly can down on the highest interest loan first. Especially if you're on a short term goal like this.

Long term is different. There's some tricks as to what exactly you're paying off - Sometimes there's psychological issues regarding what to pay off first. Going for the highest interest rate first isn't always the best thing to do - it depends on how disciplined ya are :)

Answer 2

Looking at the previous answers, I see that you are offered some sound advice. Pay off largest interest rates first is a must. If you don't want to use the google search suggestions, use the following formula. (P+(P*daily interest rate))/number of payments.
P=principle or total amount owed, daily interest rate should be located on credit card statement (if your talking about credit card debt), and number of months is the number of payments you have left. So find out how much you owe and multiply it by the daily interest rate and then add that total to the amount you currently owe and divide that by 4 for your first payment for that particular debt. Do this with each debt and add them together to find how much you will owe for each month. The next month or payment will be divided by 3 and the next month by 2 and then the last you don't have to divide since it will be divided by one.

Answer 3

Before you do that, you may want to look at your higher interest debts first. Take what you owe total, divide by 4 and make that payment to the bill with the highest interest rate. it will take you slightly more than 4 months to pay off your debt. Can't forget the interest....

Answer 4

The fast and dirty way would be to pay 30% of the current balance every month on each debt. Pay the same amount each month. The 4th month will probably be somewhat less unless you have an outrageous interest rate.

Answer 5

add up the total amount of your dept then divide it by the four months. Then divide that by how much money you will be willing to pay each pay period. Do that until you have an evened out balance. I did that and i payed off all my credit cards in eight months and i have 4.

Answer 6

CNN Money has an awesome calculator that will help you to figure it out. Check it out at http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp

They also have tons of good articles about money managment and personal finance, as well as an inspirational series of articles called "Millionaire in the Making."

Good luck!

Answer 7

Type the question into Google, calculator will come up in the results

Answer 8

use ur brain and hope u dont get ur knees hit out by a copple of gangstars that u boroed money from

Answer 9

google oprahs debt diet...follow steps...