Managing your debt is all about being organized and sticking to a budget. It’s easy to get yourself in trouble if you don’t take the time to organize your finances, and this can have dire consequences if you don’t manage it well. The good news is that there are tools available that make managing debt easy, like a student loan calculator.
Establish Your Living Expenses.
The first step to managing your debt is to establish your living expenses. It would help if you listed everything you spend on each month, including rent/mortgage, utilities, groceries and other bills (car payments, student loan interest). Be sure to include any irregular expenses such as insurance premiums or annual expenses like property taxes.
Now that you have a list of everything it costs per month to live in your home or apartment and pay off your car or student loans add those amounts up! This total represents how much money is required for basic survival for the next 30 days without fail.
Automate Your Bill Payments.
One of the best ways to manage debt is using a loan calculator. A loan calculator is a great tool that allows you to understand how much you can borrow, what your monthly payments will be and how long it will take for your loan to be paid off. The easiest way to set up automatic bill payments is by doing so directly with the company or organization that provides you with the service or product. For example, if you have an electricity bill that comes every month from your utility provider, then this should be paid automatically by direct debit.
Suppose you are setting up monthly phone bills and internet services. In that case, these should also be set up as recurring payments so that they are automatically deducted from your bank account each month without any effort on your part.
List All Your Creditors.
The first step in managing your debt is to list all of your creditors, including loans, credit cards and other debts. Keep a record of any payments you make and keep track of payments made on your behalf by others. For example, if a creditor sends you payment stubs each month, use these as well as receipts for cash advances or purchases made with a credit card for proof that you’ve paid off the balance.
Regularly Check Your Credit Report.
The first step to managing your debt is regularly checking your credit report. You can get a free copy of your credit report every year through AnnualCreditReport.com and review it for any mistakes or errors that may be showing up on it.
If you find an error, contact the credit reporting agency (Experian, TransUnion or Equifax) and let them know what you think needs to be fixed or removed from the report. They will investigate and get back to you within 30 days.
SoFi experts say, “Using a student loan calculator can help provide a reliable estimate of how much a loan will cost you in the long term.”
Loan calculators are an excellent way to manage your debt. They are available in various formats, including apps, websites and even on your phone. Using a loan calculator, you can easily calculate the monthly payments and total interest paid over time. This will help you decide whether it is worth applying for a loan.