Can I use a budget calculator to manage debt and loan repayments?

A budget calculator helps you effectively manage debt, loan obligations, and other expenses. When using a budget calculator, include the monthly instalments for repayment of your loans and credit card bills. Also, factor in the applicable interest costs.

The budget calculator will show if your net income after tax and other expenses is sufficient to cover these debt repayment obligations. If the budget indicates a deficit, you need to reduce expenses or find ways to increase your income.

A budget calculator may also help you find strategies for loan repayment. For example, you can see the impact of making lump sum payments to pay off high-interest debt faster. Or splitting your bonus income between savings and additional principal payment on a loan.

The budget surplus or deficit, considering loan obligations, provides clarity on the feasibility of your debt payoff plan. Adjustments can be made to ensure you achieve debt freedom according to your timeline.