Tips for Using a Special Debt Consolidation Calculator (cont.)
Contributed by Melanie Vannuys
However, that being said, the more advanced calculators can also give you more information. Not only will they figure out your monthly payments and interest rates, it will give you the total number of months you will pay, the total payback amount, and the payback percentage rate. Some of the more sophisticated calculators will also allow you to specify additional monthly principle payments and tell you how it affects your months to pay off, interest rates, etc.
If financial math is not your forte, and for many of us it's not, the debt consolidation calculator can be a huge asset to you in your search to find the answer to your debt problems.
The best calculator is the one that keeps you out of debt in the first place. Debt "abstinence" is the only way to avoid debt consolidation in the first place. Avoid incurring unnecessary debt by living within your means and spending less than you make. Be sure to honestly determine you "want" and your "needs." Take an honest look at your income and your necessary monthly bills, utilities, mortgage, insurance, etc, and come up with a monthly budget you can live with. Doing so will ensure that you won't need the help of a debt consolidation calculator or any other debt consolidation service.
