{"id":7044968,"date":"2026-08-23T14:19:04","date_gmt":"2026-08-23T14:19:04","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/our-step-by-step-approach\/"},"modified":"2026-08-23T14:19:04","modified_gmt":"2026-08-23T14:19:04","slug":"our-step-by-step-approach","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7044968","title":{"rendered":"Our Step By Step Approach"},"content":{"rendered":"


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At some point in our lives, we find ourselves with some or a lot of debt. Here are some of the biggest questions: How a simple debt calculator can make all the difference.<\/p>\n

How fast can I get out of debt?<\/strong>\u00a0<\/p>\n

How much can I save in interest payments?<\/strong><\/p>\n

First we have to find out were did the debt come from (credit cards, loans, medical, car, etc). Then we find the interest rate of each of the debt vehicles, this will be on the statement and on the web portal. Finally we find the exact monthly payment down to the penny.<\/p>\n

We need to write this all down. In my experience seeing is believing, if I have the data but cannot visualise it into information then it is worthless and I will forget it. However, if I can see that:<\/p>\n

\n\n\n\n
Personal Loan #2<\/td>\n\u00a0\u00a0\u00a0\u00a0 23,415.24<\/td>\n8.99%<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $542.22<\/td>\n<\/tr>\n<\/tbody>\n<\/table>
Free Debt Calculator<\/a><\/figcaption><\/figure>\n
\n\n\n\n\n
Interest Paid<\/td>\nMonths to Pay Off<\/td>\nMonth Paid Off<\/td>\n<\/tr>\n
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,341.80<\/td>\n25<\/td>\nMay-2022<\/td>\n<\/tr>\n<\/tbody>\n<\/table>
Free Debt Calculator<\/a><\/figcaption><\/figure>\n

Now we have turned that data into information and can use it to make better decisions.<\/p>\n

Dave Ramsey is a leader in this space of debt free living. I agree in principle but some of the tactics I may want to debate. Such as where you pay off debt in order of smallest to largest, gaining momentum as you knock out each balance. When the smallest debt is paid in full, you roll the money you were paying on that debt into the next smallest balance.<\/p>\n

I have \u201cplayed\u201d around with Debt Reduction Calculator<\/a> which is set up to help you do case studies and see what works for you. I found that if I paid off the highest interest first I would save $9,000 in interest and still be able to Snowball. Also, according to Dave all debt is bad, I disagree on this point. Yes, some unsecured debt<\/a> is bad<\/a> however, I was able to borrow money at a great interest rate to pay off a higher rate loan.<\/p>\n

This gets into the Time Value of Money (TVM)<\/a> not to get to deep for this article it states that,\u201d money today is worth more than tomorrow.\u201d Given that money can earn compound interest, it is more valuable in the present rather than the future.<\/p>\n

\n\n\n\n\n
Creditor<\/td>\nBalance<\/td>\nRate<\/td>\nPayment<\/td>\nInterest Paid<\/td>\nMonths to Pay Off<\/td>\nMonth Paid Off<\/td>\n<\/tr>\n
Good Loan<\/td>\n\u00a0\u00a0 23,262.00<\/td>\n0.88%<\/td>\n$396.66<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 87.99<\/td>\n10<\/td>\nFeb-2021<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

So what does this mean? Well first you would save about $2,300 in interest payments. The $542 monthly payment could help pay off the new debt faster.<\/p>\n

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\"Debt
Calculator<\/figcaption><\/figure>\n<\/div>\n

With this calculator you are able to see which of the different strategies works best for you.<\/p>\n

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