Loan Interest Calculators- a Motivating Tactic

Want a little motivation this Thursday for paying off those debts? I suggest playing around with a loan interest calculator. Just google “loan interest calculator” (I used this one), plug in the numbers, and play around. I think it’s easy to feel like making small extra payments each month is a futile effort- especially if you have a huge amount of debt like me. But you guys, it’s not! Like at all!

For example, I put in my $90,000 of debt at an average of 7.9% interest and calculated that, making just the minimum payments, I will end up paying almost $83,000 in interest over the course of the loan (what?!). But, if I increase my minimum payments by $500/month the interest over the course of the loan would be reduced to $32,000 (yes, still a lot but so much better).

Now I recognize that $500 is a lot extra per month, so I tried the same exercise, this time increasing my payment by just $25 per month. Guess what? That small amount extra would reduce the interest over the course of my loans to $76,000- saving me almost $7000. Just by adding $25 per week! So there you go, if that’s not inspiration to pitch some extra dough each month (no matter how little) to your debts, I don’t know what is.

One Comment

  1. Ok I believe im screwed but if there is any chance I might as well shoot for it well I need a loan for 5000 within four days or I will be homeless and without a car I dont wait till the last min for anything cause this happens but the reason I need the loan me and my wife were hit with a ton of medical bills and that took about rent and car payment money for the last few months but now that that insane moment is over we gotta pay people or things get worse than they were so if anyone has any information words of advice anything I would be very grateful

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