Dead On Last Payment Calculator spreadsheet


dead on last payment calculator spreadsheet
This calculator will show you one of the quickest ways to pay off your credit card or other debt (popularized by David Bach of "Finish Rich" fame). It does the job of sorting out your debts into the right repayment order, which will greatly reduce the payoff time and the amount of interest you pay.

There are two main philosophies regarding debt repayment.  The first is to use the most mathematically perfect method to reduce the amount
of interest paid during the debt payoff. The way to do this is to pay down the highest-interest debt first; e.g. paying down the $10,000 14% interest credit card balance before the $1,000 5% student loan. The second philosophy is to take into consideration the effects of human nature on debt repayment. For example, pay down the smallest debt first in order to achieve a quick “victory” and maintain motivation to pay down the larger debts.

There is only one method that belongs to the first philosophy above, the "mathematically perfect" way to pay down debt and pay the least amount of interest possible.  There are many other methods that belong to the second philosophy above.  The Dead on Last Payment calculator is one of those.  It will help you to put your debts in a payoff order that will help you stay motivated about paying off your debts.

Click here to  download the Dead On Last Payment Calculator spreadsheet

{ 6 comments… read them below or add one }

Charles Zissman May 12, 2007 at 10:22 am

I am the manager of a company that helps people successfully exit foreclosure. I became interested in your products as tools to recommend to my customers.

I notice that your DOLP spreadsheet calculator doesn’t consider the interest rate on debt as it calculates a recommended repayment plan. Can you explain why this is?

Thank you,

Charles Zissman

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Sean May 12, 2007 at 3:27 pm

In response to your question about why the DOLP calculator does not
consider the interest rate on debt as it recommends a repayment plan:

There are two main philosophies regarding debt repayment. The first
is to use the most mathematically perfect method to reduce the amount
of interest paid during the debt payoff. The way to do this is to pay
down the highest-interest debt first; e.g. paying down the $10,000 14%
interest credit card balance before the $1,000 5% student loan. The
second philosophy is to take into consideration the effects of human
nature on debt repayment. For example, pay down the smallest debt
first in order to achieve a quick “victory” and maintain motivation to
pay down the larger debts.

There is only one method that belongs to the first philosophy above,
the “mathematically perfect” way to pay down debt and pay the least
amount of interest possible. There are many other methods that belong
to the second philosophy above. The DOLP calculator is one of those.

If you are looking to recommend something to your clients as they get
out of foreclosure, I suggest Dave Ramsey’s “Debt Snowball” approach.
Dave believes in the second philosophy described above, and the
thousands of people who have successfully used his approach seem to
support that method and philosophy.

I hope this helps. Please let me know if there is anything else I can
do for you.

Reply

Brenda December 31, 2007 at 1:48 pm

I like this concept but I don’t think it works for credit cards that have more than 1 interest rate. I have a couple of cards that have very different rates for cash advance checks vs purchase charges (1.99% vs 7.9%). The 1.99% has a much lower daily balance than the 7.9% charges and my payments can only be applied to the lower interest rate 1st. So, how does the program take these cards into consideration? Thanks

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Don Draper January 9, 2010 at 11:28 am

Credit card debt elimination through debt settlement can be a very attractive alternative for debt relief. Using this calculator to eliminate the remaining debt is something I can recommend to clients.

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Hank June 25, 2010 at 12:25 am

I’m very pleasant to use it cause it does the job of sorting out your debts into the optimum repayment order, which will greatly reduce the payoff time and the amount of interest you pay.

Reply

Jonathan October 30, 2010 at 1:22 pm

I prefer the first method. Whilst i understand the psychological power of seeing smaller debts paid off first and the feeling of acheivement to me it makes little sense because you are only going to pay more on higher interest rate debt in the long term, so tackling it quickly and eating into the capital amount is key for me.

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