Credit Card Direct: Rolldown your credit card debt

Rolldown Your Credit Card Debt

The Credit Card Rolldown Calculator applies two simple principles to paying off your credit card debt.

Pay off your smallest balance first.
When a card balance is paid in full, apply its monthly payment to the card with the next lowest balance.

To see how this can be applied to your credit card debt, enter your credit card balances and an additional rolldown amount. The calculator will then apply your additional monthly payment to the credit card with the lowest balance. When that credit card is paid in full, the card with the next lowest balance will be paid down. This continues until your have rolled through all of your credit cards and your debt is paid in full.

This Financial Calculator requires a Browser with Java Support

User's Guide Manual

To use this calculator effectively:
1. Read the definitions at the end of this page.

2. Enter all of the variables: rate (%) and dollar ($) amount.

3. Select the "Details" button to open a budget table calculator. Enter all of the variables: rate or dollar ($) amount; then, click "OK".

4. Select varieties of options and possibilities.

5. To see the results Click "Calculate" button.

6. To read and print more detailed explanations of the results, click "View Report" button.

Definitions

Credit cards Enter up to 10 credit card accounts, one on each line.

Balance Your current balance on your credit card.

Interest rate The annual percentage rate you pay on this credit card. The rate you enter is used to calculate the interest on all future payments for the credit card. The length of time to pay off this credit card may be much greater than calculated if you enter a low promotional interest rate that is only good for a short period of time.

Payment This is your initial monthly payment. For if you checked the "use credit card minimum payments" box, your monthly payment is calculated as 2% of your current outstanding balance. With the "use credit card minimum payments" box checked, your monthly payment will decrease as your balance is paid down. This can greatly increase the length of time it takes to pay off your credit cards. Uncheck this box to enter your own monthly payment that will remain the same until your balance is paid in full.
( We calculate your minimum monthly payment as 2% of your current outstanding balance. While your actual minimum monthly payment may be slightly different, this is one of the most common methods used by credit card companies to calculate minimum payments.)

Additional payment This amount is in addition to your monthly minimum payments that you will use to pay down your credit card debt. The higher this amount, the faster your debt will be paid off. It is important that your additional payment is one that you can afford. For the Rolldown method to be effective you must be consistent in your payments. If you choose an amount that is too high, you may become discouraged if you are unable to meet your payment goal.

* Information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

* You may link to our calculator web sites or print them out for your own personal use, but no parts of these pages or software program can be copied, reproduced, sold, or transmitted in any form without explicit written permission. By copying or paraphrasing the intellectual property on this site, you're automatically signing a binding contract and agreeing to be billed $10,000 payable immediately.

Credit cards	Enter up to 10 credit card accounts, one on each line.
Balance	Your current balance on your credit card.
Interest rate	The annual percentage rate you pay on this credit card. The rate you enter is used to calculate the interest on all future payments for the credit card. The length of time to pay off this credit card may be much greater than calculated if you enter a low promotional interest rate that is only good for a short period of time.
Payment	This is your initial monthly payment. For if you checked the "use credit card minimum payments" box, your monthly payment is calculated as 2% of your current outstanding balance. With the "use credit card minimum payments" box checked, your monthly payment will decrease as your balance is paid down. This can greatly increase the length of time it takes to pay off your credit cards. Uncheck this box to enter your own monthly payment that will remain the same until your balance is paid in full. ( We calculate your minimum monthly payment as 2% of your current outstanding balance. While your actual minimum monthly payment may be slightly different, this is one of the most common methods used by credit card companies to calculate minimum payments.)
Additional payment	This amount is in addition to your monthly minimum payments that you will use to pay down your credit card debt. The higher this amount, the faster your debt will be paid off. It is important that your additional payment is one that you can afford. For the Rolldown method to be effective you must be consistent in your payments. If you choose an amount that is too high, you may become discouraged if you are unable to meet your payment goal.