Debt Managment Center

Welcome to the Debt Management Center. Too many families are struggling with the emotional and financial consequences of having too much debt in their lives. The intense pressures of housing and market depreciation, career insecurity, and the erosion of our assets from inflation and taxation all combine to take their toll on our families. All around us we have the example of media imaging portraying what "the good life" is supposed to be. Invariably, that example seems to involve overspending and reaching too far too fast. We want financial security, but we end up with its opposite.

Real financial security is gained by developing discipline and learning to separate needs from wants. Financial independence is not about spending more. It's about saving more. It is living within our means and reducing and ultimately eliminating debt. Imagine how much better life would be with all your debts paid off and having a healthy cash reserve! This is what we want to help you do.

We hope that you will find this tool useful in helping you see the impact debt has on families. We also hope that by using our simple methods you can chart a course to get out of debt fast and start accumulating money.

Debt Stacking Concept

When you pay off the first debt in your plan, you add the payment you were making toward that debt to your existing payment on the next debt. (Your total debt payment amount each month remains the same.)

Debt stacking is illustrated in the example below. When the MasterCard is paid off, the $75 is applied to the Visa, accelerating its payment to $175. After the Visa card is paid off, the $175 is applied to the student loans for a total payment of $305. The process is then continued until all debts are paid off. Once all debts are paid off, the same amount that was once being contributed toward paying off debts is now saved in an interest bearing account.

If you can allocate an extra amount to pay off your debt a little quicker, our calculator has a place for you to enter that extra payment amount and you can see what impact this can make on your financial situation.

Debt Stacking Concept Illustration
How-To use the Debt Calculator

1. Get Organized. Take some time and get organized and gather your information. Actual statements from your accounts will help the process go quicker and give you more accurate results.

2. Enter Your Data. Enter your data into the online form. If you have more accounts than there is space, simple click the "Add Creditor" button to give you more lines. Notice that there is a place to enter an "Extra Payment." Use this field to enter a dollar amount that you could put towards debt over and above the payments you are currently making.

3. View Your Plan. Click "Next", you will see just how powerful debt stacking can be for you. If you entered an extra payment, you will also be able to see how much of a difference it will make. If you want or need to make any adjustments, simply click the back button and make adjustments.

4. Follow Your Plan - Start Saving. Remember that your goal is to create financial independence, so when you pay off your debt, begin to save that money. This last page shows what can happen if you simply save the same amount you were paying towards debt and instead, put it into a savings program. In the data we display, we are assuming you are able to get an 8% rate of return.

Example 1 Example 2 Example 3
Debt Input
Extra Payment:
Debt Summary

Below you will see difference between what you are currently doing compared to the power of debt stacking.

What you have been doing
If you use the Debt Stacking Method
Total Interest
Total Principle
Total Interest + Principle
Date Paid Off

Interest Saved
Time Saved
By Using the Debt Stacking Method you would save:

Now that you have seen the impact debt stacking can have on your situation, click "Next" to see the savings section.


Now that you've seen how much of an impact debt stacking has on both the amount of interest and time you can save, it is important to take the next step... Saving all that money!

Below is an illustration of how much money you could potentially accumulate if you took the entire amount you had previously been paying toward your debts, saved all of it, and were able to get an 8% rate of return.

The calculator outlines how much money you would have at 5, 10, and 15 years from the date you paid off all your debts.

Most people are surprised to see how much money they can accumulate when they start having the principal of compound interest work for them instead of against them!

Amount Saved with a 2% Rate of Return
Amount Saved with a 4% Rate of Return
Amount Saved with an 8% Rate of Return
Amount Saved with a 12% Rate of Return
In 5 Years you will have saved
In 10 Years you will have saved
In 15 Years you will have saved

For a more thorough analysis and to see how to get started saving money, please contact your local Provident Generation of America representative.

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