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 highest interest rate card first.
When a card balance is paid in full, apply its monthly payment to the card with the next highest interest rate.

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 highest interest rate. When that credit card is paid in full, the card with the next highest interest 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
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.
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.)
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.
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.
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.