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Definitions
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| Credit cards: |
Enter up to 10 credit card accounts, one on each line. |
| Balance: |
Your current balance on your credit card. |
| Interest rate: |
The annual percentage rate you pay on this 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 payoff this credit card may be much
greater than calculated if you enter a low promotional interest rate that
is only good for short period of time.
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| Payment: |
This is your initial monthly payment. If you checked 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 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 Rolldown method to be
effective you must be consistent in your payments. If 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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Information and interactive calculators are made available to you as self-help tools for your
independent use. We can not and do not guarantee their accuracy or their
applicability to your circumstances. We encourage you to seek personalized
advice from qualified professionals regarding all personal finance
issues.
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