Nearly a quarter of consumers, or 28 million people, have added to their credit card debt as a result of the coronavirus pandemic, according to a recent survey. Even before the full economic effects of the pandemic began hitting consumers, total household debt rose to $14.3 trillion in the first quarter.
If you're taking on new debt or trying to pay off what you owe, our loan calculator can help you see how much you will pay monthly, how long it will take to pay off the debt, and how much you'll pay in interest. It can help you figure out how much money you can save by paying more than the minimum each month, too, if you can afford to do so.
You can also use the calculator to see how much you can save with a lower interest rate, which could be the push you need to call your credit card company, consolidate your debt, or create a plan to boost your credit score.
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Whether you're looking to finance a new home or car, pay off your student loans, or are wondering just how much carrying that credit card balance will cost you over the long run, enter your information below to figure out the best debt payoff plan for you.
How to get out of debt
While the May jobs report was better than expected and some experts think this recession will be over quickly, millions of Americans remain out of work or have otherwise had their incomes disrupted by the pandemic. Stimulus checks and supplemental unemployment benefits have provided some relief during, but many people are still going into debt to pay bills.
The good news for consumers is that interest rates are low and are going to stay that way: The Federal Reserve made an emergency decision to cut rates to zero in March and then announced in June that it expects to keep the rates near zero through 2022. That makes now a good time to consider refinancing your debt or calling lenders to try to negotiate lower rates.
Choosing an approach to tackling your debt can help, as can hearing stories of real people who have managed to become debt-free, like this North Carolina couple that paid off $300,000 in three years.
The article "Loan Payoff Calculator: See How Quickly You Could Become Debt-Free" originally published on Grow+Acorns.
