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How to calculate debt repayment options

Estimated time: 30 minutes
Level of difficulty: easy

Steps to take

1. Find out who you owe and how much you owe.

Review loan applications and credit card statements to identify the terms of your loan.

2. Use PowerPay to determine your repayment method.

Enter the information into ©PowerPay, a free debt repayment on-line calculator , to determine which repayment method is best tailored to your needs. If you haven’t used PowerPay yet, you may want to review our PowerPay How To.

3. Decide your repayment plan.

Decide how much you can pay back and when you can pay it back.

4. Get feedback.

Discuss your plan with your creditors.

5. Control your spending.

Control your spending by sticking with your debt repayment plan until bills are paid.

6. Review your plan.

Occasionally, look over your plan to see if you are keeping up with your bills and your daily living expenses. If there is a change in your income, you need to raise or lower your monthly payments accordingly.

Follow-up steps

  • Review your printed copy of When Your Bills Pile Up for suggestions on how to contact creditors and how to write sample letters.