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Every Dollar Debt Formula:
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The Every Dollar Debt Calculator helps you calculate your total debt by summing up all your individual debts. It follows the EveryDollar budgeting principle of tracking every dollar you owe to get a complete picture of your financial obligations.
The calculator uses a simple summation formula:
Where:
Explanation: The calculator adds up all the debt amounts you enter to give you a comprehensive total of your financial obligations.
Details: Knowing your total debt is crucial for financial planning, budgeting, debt repayment strategies, and overall financial health assessment. It helps you understand your complete financial picture and make informed decisions.
Tips: Enter your individual debt amounts in the provided fields. You can enter up to 5 different debts. Only the first debt field is required, but you can fill as many as needed. All values must be positive numbers.
Q1: What types of debts should I include?
A: Include all types of debts - credit card balances, student loans, car loans, personal loans, medical debts, and any other money you owe.
Q2: Should I include mortgage debt?
A: This depends on your financial goals. Some people include mortgage in total debt calculations, while others separate it. For a complete picture, include all debts.
Q3: How often should I calculate my total debt?
A: It's recommended to calculate your total debt monthly to track your progress in debt reduction and stay on top of your financial situation.
Q4: What's considered a good total debt amount?
A: This varies by individual circumstances, but generally, a lower debt-to-income ratio is better. Many financial advisors recommend keeping total debt payments below 36% of your gross income.
Q5: Can I add more than 5 debts?
A: The calculator currently supports up to 5 debt entries. For more complex debt situations, you may want to use a spreadsheet or financial software that can handle more entries.