Understanding Debt
Understand the numbers before you decide what to do.
Free. Private. No financial products being sold.
Your calculations are made in your browser. The figures you enter are used by the calculator on this page. Peaceful Planet does not need your bank login or bank account details, and this calculator does not save your figures for you.
We are not a lender, broker or debt-transfer service. We will not offer you another credit card, loan or financial product.
Our purpose is simply to help you understand your debt, see how the numbers work and explore your options.
Results are estimates for education and planning, not financial advice.What is Peaceful Planet?
Peaceful Planet works to help people understand their rights, their circumstances and the choices available to them.
We call the growing ability to understand, choose and act, agency.
Agency can be personal agency or community agency.
Personal agency is your ability to understand your circumstances, make choices and take action for yourself.
Community agency is when people in a community develop the understanding and ability to work together, make informed choices and take action on matters that affect them.
This Money Tool is one practical way for you to develop personal agency in everyday life.
Understand what is happening
What is APR?
APR means Annual Percentage Rate. It is a standard way of expressing the yearly cost of borrowing as a percentage, including interest and certain charges.
What is compound interest?
Interest is added to an amount and future interest is then calculated on the new total. Compound interest works both ways. When you save or invest money, interest can be added to your money and then earn further interest. When you borrow money, interest can be added to what you owe and further interest can then be charged on the growing balance. The same mathematics can help your money grow or make your debt grow.
Why might my statement be different?
This calculator uses APR divided by 12 as an approximate monthly rate. Actual card calculations can also be affected by daily interest, fees, promotional rates, new purchases and individual card terms.
Understanding creates choices
The aim is not to tell you what to do. It is to help you understand what is happening, explore your options and make a more informed decision. Understanding is the first step towards taking greater control.
1. If I keep paying this amount, how long will it take?
2. I want to be debt-free within a certain time
3. My interest has been frozen
If no more interest or charges are being added, find out when the debt will finish.
Important information
This tool is for education and planning and is not financial advice. If you are in financial difficulty, consider seeking free, independent debt advice from an appropriate qualified service.
Understanding creates choices
Understanding debt is one part of understanding your financial position. Peaceful Planet's first three Money Tools are designed to work together.
They can help you understand debt, see your present money position and plan for future payments.
Use them in whatever order is useful to you. Becoming familiar with all three will give you a clearer picture of your finances now and what lies ahead.
From understanding to greater financial independence
We are also developing a fourth Money Tool: Escaping the Poverty Trap.
It will bring together information about your money, debts and future commitments with the other circumstances that affect financial independence.
We recommend becoming familiar with the first three Money Tools before using it. The clearer your starting picture, the more useful the fourth tool can be when you explore your own route towards greater financial independence.
Escaping the Poverty Trap — in development
Your information. Your choices.
Peaceful Planet provides the educational tools. You decide what information to enter, what you learn from it and what action, if any, you want to take.
The aim is not to tell you what to do. It is to help you understand your circumstances and make your own informed choices.
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