Roll-Down Your Credit Card Debt!

The credit card roll-down applies two simple principles to paying off your credit card debt.
  1. Pay off your highest interest rate first.
  2. When a credit card balance is paid in full, apply its monthly payment to the balance with the next highest interest rate.
To see how this can be applied to your credit card debt, enter your credit card balances and an additional Roll-down amount. The calculator will then apply your additional monthly payment to the credit card with the highest rate. When that credit card is paid in full, the card with the next highest rate will be paid down. This continues until you have rolled through all of your credit cards and your debt is paid in full. Click the "View Report" button for a detailed look at the results.

The roll-down strategy could help you pay MSG_INTEREST_SAVINGS in interest.

You owe a total of OUTSTANDING_BALANCE. Your current minimum monthly payment is MONTHLY_PAYMENT. If you continue to make the minimum payments the total interest paid will be INTEREST_CURRENT. It will take you CURRENT_PAYOFF to pay off this debt. **GRAPH**

Using the roll-down method, your total payments would be NEW_MONTHLY_PAYMENT, which includes an additional ADDITIONAL_AMOUNT per month. This could help you pay MSG_INTEREST_SAVINGS in interest. In addition, the time it will take you to pay off your debt is reduced to NEW_PAYOFF. This analysis assumes that each month you apply your snowball amount to MSG_METHOD. **GRAPH**

Credit Card Debt
 Amount OwedMonthly PaymentInterest Rate
Totals OUTSTANDING_BALANCEMONTHLY_PAYMENTAVERAGE_RATE
Roll-Down Debt Details
 Amount
Owed
Initial
Roll-Down
Monthly Payment*
Debt
Paid In
Total OUTSTANDING_BALANCENEW_MONTHLY_PAYMENTNEW_PAYOFF

*Please note that this amount may increase as additional debt balances are paid off.

Roll-Down Payment Schedule

**REPEATING GROUP**

Roll-Down Your Credit Card Debt! Definitions

Roll-down amount
This dollar 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 snowball method to be effective you must be consistent in your payments. Should you choose an amount that is too high, you may become discouraged if you are unable to meet your payment goal.
Pay off highest rate first
Leave this box checked to have the calculator pay off your balance with the highest rate first. You can uncheck this box to see the results of an alternate payment method. The alternate method pays off your balances starting with the lowest balance.
Use minimum payment
If you checked the "use credit card minimum payments" box, your monthly payment is calculated as 4% 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 4% 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.)

Credit card balance
Your total current balance for this credit card.
Credit card interest rate
The annual percentage rate you pay for this credit card. The rate you enter is used to calculate the interest on all future credit card payments. 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.
Credit card payment
This is your initial monthly payment. If you checked the "use credit card minimum payments" box, your monthly payment is calculated as 4% 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 4% 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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