How do I work with a debt reduction plan?
After you create your debt reduction plan, Quicken calculates a debt payment schedule optimized to reduce the amount of interest you pay and get you out of debt as early as possible. Quicken also provides tools to monitor your progress and make changes to your plan, as your situation changes.
- Click the Planning tab.
- Click the Debt Reduction button.
- View a topic below to learn about working with your debt reduction plan.
- Projected Payoff Date and Savings
The Projected Payoff Date and Savings graph displays the total amount of your debt, and when you will be debt free if you stick to your plan.
- The yellow line projects an outcome based on making only minimum payments on your debts. This is not your plan. This line is for comparison, showing you the consequences of paying only what is required by your lenders. Click Minimum Payments in the graph legend to view the payments total, the payoff date, and the interest you would pay if you completed this plan.
- The green line projects an outcome based on the payments you've already made, plus the payments you will make from this month forward, as listed in the payment schedule. What this means is that if you pay more or less than what is recommended in the payment schedule, the green line will change its path to reflect your progress and future payoff date. Click Your Progress in the graph legend to view the total of your monthly payments, payoff date, time savings, and interest savings (compared to minimum payments) if you completed this plan.
- The grey line projects an outcome based on a perfect execution of your original debt reduction plan, making each and every payment exactly as listed in the payment schedule—no more or no less—from the first month to the last. This line does not appear on your graph until after the first month of the plan. Click Original Plan in the graph legend to view the payoff date, time savings, and interest savings (compared to minimum payments) if you completed this plan.
- To understand how well you're doing, compare the green and grey lines: If the green line is to the right of the grey line, you're behind schedule; if the green line is to the left of the grey line, you're ahead of schedule!
- Note that all amounts are rounded up to the nearest dollar.
- Experiment with other Payment Plans
Click What If to see what would happen if you changed your monthly payment amount, or if you made a onetime payment on top of your regular monthly payment, or if you changed the order in which you paid off your debts. If after experimenting you decide that you'd like to replace your current plan with your experimental plan, you can easily do that. To learn more, see Experiment with Other Plan Options.
- Payment Schedule
The Payment Schedule lists the monthly payments you'll need to make on each of your debts to achieve your plan. You can simply come back to the Debt Reduction Planner each month to see how much you need to pay, or you can print your payment schedule and reference it as you pay your bills.
For each debt in your plan you will see:
- The upcoming payments
- The projected payoff date
- The current balance and APR
Click See full schedule to see more months of your plan. While viewing the full payment schedule you can print a copy of it for your records. It is not possible to print more than twelve months of your payment schedule.
Note that all amounts are rounded up to the nearest dollar.
