| Debt calculator is a tool, which is used not only for the | | | | 3) APR Calculator: |
| debtors but also for the creditors. With the help of a | | | | APR or Annual Percentage Rate may be referred to |
| debt calculator an individual who wishes to avail a debt | | | | as the cost incurred on the life of a loan every year |
| can calculate the rates of interest and the amount a | | | | (annually). Some of the costs may include loan fees, |
| debtor is required to pay per month. The debt | | | | insurance costs, rate of interest, service charges, |
| calculator studies the current financial status of the | | | | points as well as mortgage fees. |
| debtors and accordingly works out the monthly | | | | Functions- |
| payments of the debtor. In other words, a debt | | | | With the help of this calculator, the APR of the loan |
| calculator helps in customizing a debt account. | | | | may be calculated. This calculator is also very |
| Types of Debt calculator: | | | | interactive. |
| The following types of debt calculators are used | | | | 4) Debt Reduction Calculator: |
| widely. They are listed below. | | | | Debt reduction includes different types of debt |
| • Debt Consolidation Calculator | | | | consolidation programs. Consolidating debt is the first |
| • Debt Income Ratio Calculator | | | | step towards debt reduction. |
| • APR Calculator | | | | Functions- |
| • Debt Reduction Calculator | | | | By using this debt calculator, a debtor is able to find out |
| • Credit Card Payment Calculator | | | | exactly how much money is being saved by debt |
| • Unsecured Loan Calculator | | | | consolidation. |
| In order to make the best use of a debt calculator, a | | | | 5) Credit Card Payment Calculator: |
| thorough understanding of the working of each of the | | | | This debt calculator requires information about the |
| debt calculators is essential. | | | | following fields-monthly payments, principal amount and |
| 1) Debt Consolidation Calculator: | | | | rate of interest. |
| Debt consolidation is referred to as a condition when | | | | Functions- |
| several debt accounts are clubbed into one and the | | | | With the help of this debt calculator a card holder is |
| debt is offloaded usually by making a single payment. | | | | able to know exactly how much time it will take to |
| The payment is usually made at a lower interest rate. | | | | make full payment of a credit card debt. This |
| Functions- | | | | calculator also helps in calculating the interest, which is |
| The payment, which a debtor has to make every | | | | required to be paid if the debtor opts for a minimum |
| month if he wishes to opt for debt consolidation is | | | | monthly payment. |
| calculated by a debt consolidation calculator. The time | | | | 6) Unsecured Loan Calculator: |
| limit within the payment has to be made is found out. | | | | Unsecured loan may be referred to as a type of loan, |
| Amount of money saved from the debt consolidation | | | | which does not have any collateral against it. Some |
| program is also calculated with the help of this | | | | examples of unsecured loans may include medical bills, |
| calculator. | | | | departmental store cards, credit card debts, student |
| 2) Debt Income Ratio Calculator: | | | | loans, bounced checks as well as personal loans. |
| Debt to income ratio may be defined as the monthly | | | | Functions- |
| debt obligations (total) to the monthly income (total) of | | | | The unsecured loan calculator helps in the consolidation |
| an individual. The calculation is made depending on the | | | | of multiple debt accounts, which are unsecured into |
| individual’s liabilities as well as current income. | | | | one debt account. |
| Functions- | | | | These debt calculators are usually online and one may |
| This debt calculator helps a lender in estimating the | | | | use them from the comfort of ones office or home. |
| debtor’s repayment capacity. This type of debt | | | | The debt calculators also help in planning out a debt |
| calculator also calculates the amount, which is being | | | | program effectively. The expenses incurred on a loan |
| spent every month for making debt payments and | | | | account may also be predicted and a debtor can be |
| payments for other recurring financial obligations. | | | | prepared accordingly. |