debt elimination

New! The Mastermind Within Debt Destruction Tool!

Erik Debt Reduction, Financial Education, Thoughts of a Mastermind 16 Comments

Today is a big day for The Mastermind Within. We are incredibly excited to bring you The Mastermind Within Debt Destruction Tool. This is a tool which has helped our clients save $1000s and we are making it available to everyone for FREE.

The Mastermind Within Debt Destruction Tool

For motivated individuals who want to become debt free, The Mastermind Within Debt Destruction Tool will help you take control of your financial situation, pay off your debt, and get on to financial freedom. We promise you will save $1000s in interest payments with our FREE The Mastermind Within Debt Destruction Tool. 

The Mastermind Within Debt Destruction Tool is an Microsoft Excel Spreadsheet which will take your debts and budget, and automatically calculate your interest savings using two methods.

First, you input your debts by debt name, balance, interest rate, and monthly minimum payments.

tracking debt

Next, you will create a budget for yourself. The budgeting tab will add up your monthly income, expenses and minimum debt payments and calculate the left over amount. With this left over amount, you can put some money into savings or use it to pay down extra debt. The budget must balance!

Finally, put your current savings balance in on the right side and hit the calculate button!

new the mastermind within debt destruction tool At this point, the tool calculates your potential savings using two different methods. There are two debt pay down methods: the Avalanche Method and the Snowball Method.

The Debt Avalanche Method

In the Debt Avalanche Method, you pay off your debts by paying extra towards your highest interest rate debt. Once you have paid off the highest interest rate debt, you put that payment towards the next highest until all debt is paid off.

The Debt Avalanche Method is the mathematically optimal debt pay down strategy.

The Debt Snowball Method

In the Debt Snowball Method, you pay off your debts by paying extra towards your smallest balance debt. Once you have paid off the smallest balance debt, you put that payment towards the next smallest until all debt is paid off.

Many people like the Debt Snowball Method because psychologically, you can see your debt accounts disappear. If you have an $1,000 loan and a $5,000 loan, it feels good to have the $1,000 loan gone.

The Debt Snowball Method is not mathematically optimal, but is still better than applying no strategy at all.

After the Calculations, Your Savings!

Once the calculations are done, you are shown a summary sheet. For this example, our user had 2 credit cards, a mortgage, an auto loan, and a student loan totaling $246,500. By paying an extra $25 a month and applying a debt pay down method, they have potential savings of at least $49,915!

debt paydown faster

Finally, on the final tab, you are shown the order of debt paydown and total cost of the two methods. Looking at the left hand side of the figure below, you can see in the Avalanche method, we are paying off the highest interest rate debts first. Looking at the right hand side of the figure below, you can see in the Snowball method, we are paying off the smallest balance debts first.

debt pay down order

There is also a table that shows the time until you are debt free and the total cost of your debt over that time period. We’ve included the statistics if you increase your extra debt payments by $100. The difference is fairly substantial just by paying an extra $100 a month!

In our example, the user started out with $246,500 in total debt. If no method was used, it would take 290 months (just over 24 years) and cost $371,109 to become debt free. By paying an $25 extra a month, the user is able to save nearly $50k, and chop off 140 months (nearly 12 years) off their payment plan! If the user could find an extra $100 in their budget, they could save an additional $12,000 and be debt free 158 months sooner!

Limitations

It’s difficult to make a tool which will handle every single possible situation. As a result, there are some limitations of The Mastermind Within Debt Destruction Tool:

  • There is no functionality for floating rate debt products
  • There is no functionality for adjustable rate debt products

Besides these two limitations, the tool does well across different debt products, interest rates, and balance sizes.

Why This Free Tool?

The reason why we created this free tool is we are passionate about helping people with their finances. It’s truly sad when you look at debt and savings statistics:

  • Household debt totaled $12.25 trillion dollars at the end of 2016.
    • Mortgage loans total $8.48 trillion
    • Student loan balances total $1.31 trillion
    • Auto loans balances total $1.16 trillion
    • Credit card debt totals $779 billion
  • Nearly 70% of Americans don’t have $1,000 in the bank.
  • 66 Million Americans don’t have an Emergency Fund

For the reasons above, we want to help people get out of debt, saving money, and on to bigger and better things. Debt sucks – it’s a drag on your personal finances and it’s a drag on your lifestyle. No one has ever gotten rich by maxing out their credit cards, financing $50k cars, or taking on a mortgage they couldn’t afford.

By providing a tool which will provide users a strategy and method to get out of debt, we can have a big impact on many people’s financial situation.

“Being the richest man in the cemetery doesn’t matter to me. Going to bed at night saying we’ve done something wonderful, that’s what matters to me.” – Steve Jobs

Get The Mastermind Within Debt Destruction Tool Now!

Are you ready to save time and money by getting out of debt? What are you waiting for?

Fill out the form below and receive The Mastermind Within Debt Destruction Tool in your email inbox free!
 

 

Please Share

We want to impact as many lives as possible. We want to help get people out of debt and to be on their way to financial freedom.

This is a free tool – we put this together to help out our friends and family. Please share The Mastermind Within Debt Destruction Tool on social media, with family and friends, and with anyone you think could use it.

“We make a living by what we get. We make a life by what we give.” – Winston Churchill

Thank you for stopping by and letting us help you on your way to financial freedom.

What other financial tools would be useful? Do you like to build spreadsheets and applications?

Erik, Henry, and Jake

Comments 16

  1. That’s pretty cool that the debt destruction tool calculates how much money you can save with the avalanche & snowball repayment methods side-by-side. See the savings amount is always a huge motivation for me.

  2. This is a great tool guys. I think there is definitely the potential to save thousands of dollars.

    I think that both the avalanche and snowball method will help people destroy their debts. However, if people can take the initiative to consolidate their high interest debts into low interest debts, then they are actually using both methods at the same time and also pay less interest as a result.

    At the end of the day, only discipline and determination can get one out of debt.

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      Thanks Troy for the share! It took about 10 hours to make it, then about 5 hours of testing and tweaking, and then 5 hours of writing up this introduction page, how to use guide page, and landing page.

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