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Roll-Down Your Credit Card Debt
Calculators
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.
Definitions
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Payoff highest rate first
-
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
-
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
-
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
-
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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