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Credit Card Debt Roll-Down Calculator
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The Credit Card Roll-down Calculator
applies two simple principles to paying off
your credit card debt.
- Payoff your highest interest rate 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 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.
Definitions
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Payoff highest rate first
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Leave this box checked to have the
calculator payoff your credit card 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 credit cards
starting with the lowest balance.
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Credit cards
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Enter up to 10 credit card accounts, one
on each line.
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Balance
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Your current balance on your credit
card.
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Interest rate
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The annual percentage rate you pay on a
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.
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Payment
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This is your initial monthly payment. If
you check 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
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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
Roll-down 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.
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