Debt Planner

* Click here to download the Debt Planner Worksheet.

The Debt Planner Application lets you quickly illustrate the most efficient way to allocate resources to paying down debt and will demonstrate the benefit of a structured payment strategy over minimum payments showing the value of focusing on the highest interest debt first. Then, once that debt is paid off, focus on the next highest and so on. Interest saved can then be re-allocated to Risk Management and/or Retirement Savings strategies.

Start by entering the details of all of your client’s debt obligations. For each type of debt you will need to enter the interest rate, balance and current payment. Also, enter the minimum payment if different than the current payment. Then enter the “Monthly Payment Goal” that the clients are willing to commit to.

Once data has been entered click the button in the top right corner. Once calculated this will allow you to compare the impact a structured payment strategy will have. The software calculates a comparison, Restructured Payments, Remaining Balance, and a Summary.

• Comparison – Comparison between current payment plan and restructured payments.
• Restructured Payments – Illustrates the restructured payments yearly.
• Balance – Compares the outstanding yearly balance for all debts for both the current payments and restructured payments.
• Summary – Ledger showing the combined yearly payment amounts for each debt type.

Debts Summary

Enter all debts for the Client and Spouse/Partner. To enter a debt click the button. From here you can add or modify debt information. Additionally you must enter the monthly payment goal that the clients are willing to commit to.

To enter a debt click . You can then modify the information by clicking . You must enter the Type of Debt, Interest Rate, Loan Balance and Current Payment. The minimum payment can be entered, or be automatically calculated based on the interest rate and balance entered. Once entered, with or without the minimum payment, click to save the debt.

You can remove an already entered debt by clicking . Once all debts are entered or edited click to accept.

Summary

Will list the total amount paid and the total interest paid for both the Current Payment schedule and the Restructured Payment Schedule.