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ROLLDOWN YOUR CREDIT CARD DEBT
Help With Debt: Rolldown Your Credit Card Debt
The Credit Card Rolldown Calculator applies two simple principles to paying
off your credit card debt to reach your goal of becoming debt free.
- 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 debt reduction process can be applied to your
credit card debt, enter your credit card balances below 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.
Becoming Debt Free: Can You Go It Alone?
If you can commit and discipline yourself to some basic principles, such as downsizing your spending by creating and implementing a household budget, avoiding late fees by knowing when your bills are due, and managing to keep your credit record clean, you may be able to go it alone--even if you are in a worsening debt situation. On the other hand, if your problem is a lack of discipline and
your credit record already has problems, going it alone isn’t likely to be a good strategy. You may need to seek the services of a credit counseling service and let the credit counselor do their work to get you back into good financial shape. A Credit Counselor is an expert, whereas most of us are amateurs at assessing our financial situation, dealing with creditors and making a plan for help with debt. Family Credit Management Service is a non-profit credit and debt counseling service with professionally trained, certified credit counselors. Help with debt is available by calling 1-800-994-3328 or
apply online to start using our credit counseling services.
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Definitions
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| 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 payoff this credit card may be much
greater than calculated if you enter a low promotional interest rate that
is only good for short period of time.
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| Payment: |
This is your initial monthly payment. 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.)
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| 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.
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Family Credit Management Service - Services and Benefits
Your debt problem is unique to you. Family Credit Management Service offers credit counseling services and other valuable debt reduction resources that can help you get in control of your finances. Our caring, expert credit counselors are available to discuss your situation, gather the facts and give you the help you need. If you need professional help with debt, call 1-800-994-3328 or apply online to get started using our credit counseling services.
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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.
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