Debt consolidation calculator helps you to find the exact monthly payments payable within a specified time so that you can consolidate all your debts into a single debt thereby saving you a lot of money.  The debt calculator is designed to help you even to determine if debt consolidation is right for you.  You can enter your credit card dues, auto loans and other loan instalments and balances into the calculator. You can change the consolidation amount, rate and term and create a loan that can easily be accommodated within your budget.  Getting out of debt is a complex and difficult procedure. The debt calculator will calculate and give you the detailed results.  Finding such information may inspire you to find ways to clear the debts and move towards a healthy financial future. If you have multiple loans and bills to pay it is possible that you will be paying interest for decades amounting to thousands of dollars.  The debt consolidation calculator plays a vital role in consolidating your debts and in determining how much you can save by consolidating your debts. You will not only know much you will have to pay every month but also how soon your will be out of debt.

Benefits of the debt consolidation calculator:

• Get you out of debt in an average period of 4-8 years
• Reduce the interest rates to an average between 0%-8%
• Reduce your monthly payments by up to 60%
• Combine many different debts into one simple, easy monthly payment
• Ensure that all creditors are always paid on time
• Stop creditors or collection agents from harassing you for payment

List of Debt Consolidation Calculators:

• Accelerated Debt Payoff Calculator
• Debt Consolidation Calculator -1
• Debt Consolidation Calculator -2
• One Time Investment Debt Calculator
• Simple Debt Consolidation Calculator
• Debt Investment with Amortization Calculator
• Debt Raito Calculator
• Debt Investment Calculator
• Debt Payoff Goal Calculator
• Debt Investment Home Equity Calculator

Definitions of terms used in debt calculators

Credit Cards – The credit card debt and average rate of interest. You can enter multiple credit card accounts here.

Auto loans – Put your monthly payment, the term and the starting balance and how many more months are left to complete the payment.  It calculates the balance outstanding and the interest rate.  Here you can enter your auto loan details.

Other loans – Any other additional loans and their instalments can be entered here.  You can input the monthly payment, the number of months, starting balance and the number of month that remain yet to be paid.  You can enter different loans details here.

Balances – This is where you can enter current balances of your credit cards, auto loans and all other loans.

Interest rates – This is the per annum percentage that you pay.  Based on each of the categories entered such as credit cards, auto loans and other loans, the interest rate is calculated.  

Payment – This will be you initial monthly payment. Your monthly payment is usually calculated as 2 percent of the current outstanding balance.  

Companies find debt collection a huge problem and normally do not have the resources to put in to collect their due receivables. It is all the more difficult for the in-house collection staff to collect dues from abusive consumers.  The services of the professional debt collection agencies should be considered as their sole function is to collect dues from the defaulters. To prevent abusive practices in the collection of debts from the consumers and to promote fair debt collection practices the Fair Debt Collection Practices Act (FDCPA) added the Consumer Credit Protection Act in 1978.  This act gives an opportunity for the consumers to dispute and obtain validation of debt information to ensure the accuracy of the information.  The act has also created the guidelines for debt collectors involved in the debt collection business and also defines the rights of the consumers with the debt collectors.  Under this act penalties and remedies for violations are also prescribed.  It is used in certain cases in conjunction with the Fair Credit Reporting Act.

Types of Debt Collection Services:

• Data collection services
• Collection credit services
• Collection financial services
• Check collection recovery services
• Agency collection recovery services solution
• Diversified collection services
• Refuse collection disposal services

The debt collection agencies work on commission basis and a lower fee means they get paid less and are less motivated in collecting.  One should understand that they are also businesses and aim to earn profit. If they get low fees that means they would cut back on their efforts to collect debts to earn profits and would result in not achieving the desired level of collection. So the alternative method is to share a certain percentage of the money collected with the debt collection agency. If consumers are aware of the Fair Debt Collection Practices Act, and learn their rights, they can proactively make a plan to talk to the debt collectors. The following are prohibited as per this act:

1. Contacting  and disclosing the consumer’s debt to others
2. Contacting the consumer after being asked to stop and causing the phone to ring or repeatedly engaging the consumer in conversation in an attempt to annoy abuse or harass the person at the receiving end.
3. Contacting the consumer at their place of employment.
4. Contact the consumer after receiving the consumer’s written request for verification of the debt amount.
5. Misrepresenting the debt amount or using deception such as posing as an attorney or law enforcement officer.
6. Threatening arrest or legal action that are not permitted or legally contemplated.
7. Using abusive language in communication in relation to the debt.
8. Contacting by using post card any other embarrassing media.
9. Report false information on the consumer’s credit report or threatening to do it during the debt collection process.
10. Use any unfair practice to collect the debt.

Consumers should conduct all communications with the debt collection agency in writing.  They can report any violation of the act to FDCPA in writing.

Getting debt advice is the first thing you should resort to when your debt situation gets out of control.  This is the most important step towards becoming debt free through the path of debt resolution. Free debt advice can be had from many charitable organizations, independent debt advisors or companies that offer debt advice as well as debt relief services.  There is no need to panic.  Free impartial advice and help is available for those who are in a critical financial situation and need help to resolve their debt problems. There is a way to put an end to those threatening calls from the creditors.

Debt Advice Bureaus

You can seek the help of non-profit organizations like debt advice bureaus such as the Citizens Advice Bureau (CAB), Consumer Credit Counselling Service (CCCS) or money management companies that offer free debt advice. Citizens Advice Bureaus provide independent and confidential and impartial debt advice to people on their rights and responsibilities and extend help to deal with debt and chalk out ways to resolve the debt problem.  The CCCS is run on a non-profit basis as it is funded by the members of the debt industry.  

Online Debt Advice

Debtadvice is an organization that helps consumers to locate a trained and certified counsellor to assist those in need of debt advice.  This service utilizes the services of the members of the National Foundation for Credit Counselling (NFCC) and the Consumer Credit Counselling Service (CCCS). Debt advice centres recommend that by taking seven steps the person affected by over-indebtedness can find solutions for the debt crisis.   

The seven steps are:

1. Acknowledging your debts,
2. Listing your income and expenditure,
3. Maximizing your income,
4. Making cut backs to combat your debt situation,
5. Prioritizing your debts
6. Contacting your creditors
7. Prepare a long term strategy to resolve your debt

Credit Counselling

The services of credit counselling are usually free and in some cases low cost. Their trained professionals offer advice on best options that meet your individual situation and managing your money efficiently and offer solutions for alleviating the current financial crisis and also prepare a personalized plan for preventing future financial pitfalls. They hold confidential sessions and review your current debt situation and work with you for determining the best strategies.  With their help you can develop your own money action plan to achieve relief from debt. After assessing your left over after covering living expenses and priority debts, they will make an offer to your creditors for repayment. Some creditors will be asked to freeze the interest, some to stop the penalties and accept longer repayment schedule and sometimes accept a reduced amount.

Debt Advice Forum Help

The debt advice forum helps you to find strategies to negotiate with your creditors, and help you to discover the best options for your situation. They also guide you in reducing the debt payment and also try to stop the creditors from taking legal action against you.  Free specialist debt advice and free bailiff advice help can also be availed of from this forum.  

Credit cards are easy to acquire and so are credit card debts. Credit cards should be limited to the amount payable by the customer per month. A customer should analyse their pay packet and then apply for credit card limits which correlate to their income. Credit card interest rates are thrice the average mortgage rates. A late payment could be as high as sixteen percent. A credit card holder should choose a card according to his/her requirement. Overestimating your credit limits result in paying these higher late fees. Reward schemes are available at a cost of hundred dollars yearly fee. The itch is that one has to expend twenty thousand dollars to adjust with the rewards. It is similar to spending without any money on hand and acquires points that could never be exchanged.

More and more people are shifting to visa debit or pre-paid cards to purchase and stopped relying on notional money. This is the only alternative to get out of debt culture. A refinement of the system is required, where people should know their buying capacity before they spend. Unwanted buying will lead to debt crisis that could ultimately result in bankruptcy. Always depend on cash, though cash may not be safe to carry around at all times. This is where debit cards and pre-paid credit cards come into play. These help to keep a check on your spending volume. Credit card dealers charge vast interest rates. Some of the creditors charge three times mortgage rates too. Lofty interest rates leads to bankruptcy in the end. The best technique to avoid debts arising from credit cards is by not using them at all. Always use cards only in a dire situation. These cards are temptations to buy unwanted possessions and must be controlled.

First preference to get out of credit card debt is to clear all you outstanding debts by pooling your savings. Secondly dump your credit card and forget about it. Saving accounts pay only two percent as interest, whereas a credit card interest is around eighteen percent. There is no good in obtaining lower interest and paying higher for debts. The next big question is minimum balance. The minimum balance moves to five percent on your outstanding balance. Minimum balances are never used to cover debts. It can never be considered an option to clear debts. Some tips to stay away from credit cards debts are to deactivate your card once all your debt is covered. Use your savings to clean up debts. In case saving is insufficient to cover your debts opt for debt consolidation. Debt consolidation is grouping all your loans under one head and repaying them in one go. This is considered a reliable option instead of paying multiple lenders. Debt consolidation offers lower interest rates for loans. Repayment could be made on a monthly basis. Never be tempted to acquire more cards as it could turn to be disastrous. More cards mean more repayments and hence, more interest. It is ideal to settle for one card. Stop using credit cards if debts are more until quittance are made.

Debt management programs can bring big relief to your debt oriented problems. These programs are person specific, as each case is handled differently. Though, all of them have the same problem – debt, each one has different levels of debt and different income plane. But what is common is they all need guidance to fight debt. This guidance is provided by companies who have adequate experience in tackling debt related crisis. Debt problems can be tackled easily with the help of debt management programs. A debtor needs to be aware of ways and means to manage debt. It is illegal for a creditor to harass a debtor. A creditor cannot reclaim the goods purchased on loan unless the court says so. There is also an option to file a case against your creditor if you can prove the price is over valued.

A debt can be cleared only if the creditor shows some concern towards the debtors. A debt management company works toward reducing interest and decreasing monthly payments to realistic levels so that the debtor is able to clear the payments with ease. It is the responsibility of the program to offer budgeting plans to the debtor; this will help them to rectify their spending habits and keeps them away from getting into future debts. Work out your net income, it is very important to know what you get and learn how to live with it. As you check your income, it is essential to check your expenses too, for instance, rent, mortgage, food, maintenance, telephone bills, electricity bills, transportation expenses, etc are all monthly expenditures. After calculating all this, come to a conclusion on the disposable income you have on hand.

Now it is time to talk to your creditors about your financial health. Tell them clearly about your income and expenditure. Also show them the disposable income on hand and ask them to devise a repayment scheme according to your financial position. It is recommended to keep copies of all transactions with the creditor, as far as possible keep copies of letters and payment slips carefully. This may be helpful while going legal. Though, that is only a last resort.

Prevention is better than cure, it is best to avoid getting into debt than to look for debt management programs. Spend cautiously, never use credit. Pay with cash. Do not give into temptation, think of the damage it may cause later. Try to be more organized. Pay your instalments on time. Do not allow repayments to accumulate. Keep records of daily expenses; see how you could cut unnecessary expenses. Being free from debt not only improves your financial health but also your status. It can bring lot of respect to you in the society. It can boost your confidence and pride. It can give you a sense of satisfaction that you can tackle any situation easily. Debt management programs can help bring this confidence into your life, but maintaining it your financial capability.