27 Apr Know Which Loan to Payoff First!
Where Do I Start? Use CashMap’s Loan Payoff Template
I’ve created an easy to use free template that enables you to enter the details of your loan or credit card, your monthly payment and the additional payment you plan to make. You’ll see approximately how much you’ll save in interest if you were to pay off any one of your loans. Based on the information you provide, the template tells you which loan will create the greatest savings.
Depending on your individual circumstances, you can use this information to help you make your decision.
CashMap’s First Additional Loan Payment
CashMap’s line of credit strategy starts by taking five times your positive cash flow and withdrawing it from your line of credit. This is the amount you’ll apply as an additional payment on the loan you’ve decided to pay off first.
This is meant to serve as a guide. There are many other factors to consider. For example, if the interest rate on your line of credit is significantly lower than your loan, you might decide to withdraw a larger amount. What’s most important is you understand what you are doing and why you are doing it. Based on your decision, the template will estimate your savings.
CashMap’s ‘Create Your Own Line of Credit Scenario’
If you want to visualize what your line of credit will look like over the next twelve months, CashMap’s ‘Create Your Own Line of Credit Scenario’ gives you this opportunity. Simply input the information about your line of credit, the loan you want to pay off and your monthly budget. You’ll immediately see your loan interest savings and the estimated line of credit interest that you’ll pay. It’s a great way to understand CashMap’s line of credit strategy.