Generate a payoff schedule
After all account information has been specified, you are ready
to generate a payoff schedule. To begin this process, choose "Generate Schedule" from the "Portfolio" menu. A dialog will present itself for additional information.
First use the radio buttons to specify which of four schedule
types to generate. The descriptions of each follow:
- Minimize Interest
- This option calculates the most effective payoff using the amount
you want to pay towards your debt, and is the preferred method.
This will minimize the interest you pay to your creditors by paying
off the most interest consuming debts first.
- Specified Time - Highest Interest First
- This option allows you to specify the duration in which you wish
to pay off your debts in. It will use the minimizing interest
scheduling method described above. NOTE: Unregistered users will only be able to generate a schedule using
nine months or less.
- Specified Time - Lowest Balance First
- This option allows you to specify the duration in which you wish
to pay off your debts in. It will use the lowest balance scheduling
method described right below. NOTE: Unregistered users will only be able to generate a schedule using
nine months or less.
- Lowest Balance
- This option often gives the payee the feeling of accomplishment
faster by eliminating lower balance debts first. Although it is
not the ideal method for saving money, it does have aesthetic
value. NOTE: Manually prioritized accounts will not have effect on this type of schedule.
- Highest Balance
- This option prioritizes the debts with the higher balances first.
It is certainly not the most effective schedule, but gives you
another option in evaluating your payoffs. NOTE: Manually prioritized accounts will not have effect on this type of schedule.
- Minimum Payments
- This option pays off all debts using only minimum payments. This
is the absolute least optimal schedule you can use (while maintaining
regular on-time payments.)
Once you have selected the method of schedule you wish to generate,
you will need to enter a few more bits of information. If you
chose a schedule that will pay your bills with a set amount of
money, enter it in the edit field. If you wish to generate a schedule
using a set time frame, enter the number of months you wish to
generate the schedule in, in the same edit field.
Finally, use the little arrows to select when the first month
payments will commence. By default, it is set to next month. Hit
the "OK" button and a schedule window will appear, detailing each
month until either all bills are paid or, in the case of unregistered
copies, 9 months have elapsed.
Use the Statistic Tool Window
After a schedule has been generated the Statistic Tool Window
is an invaluable resource to evaluate the details of your schedule.
Choose "Show Statistic Tool" from the "Window" menu to display this floating window.
Click on any cell in your schedule window and the tool will populate
itself with information about both the overall portfolio and the
account you clicked underneath. You may use this to analyze the
effects of different scheduling techniques, and to realize the
effects of any advanced options you may have set.
Use the Minimum Interest Tool Window
When trying to figure out the minimum interest on your credit
accounts, it may elude you. If you need some quick aid in figuring
this out select "Show Interest Tool" from the "Window" menu.
Simply enter the current balance of the account and the minimum
payment that is currently due. Click
and the minimum interest amount will appear in the tool window.
Copy this number to the respective block on your account dialog.
Use the Amortization Tool Window
At any time you may use the amortization tool to figure mortgage
values. Simply select "Show Amortization Tool" from the "Window" menu.
You may use the calculator to solve for either the principle balance
or the monthly payment for typical mortgages. Click the radio
button to the left of the information you have (principle or monthly
payment). Enter the duration of the loan (in years) and the annual
interest rate. When you click
the tool will solve the eluding factor.
If you have a Canadian mortgage or other mortgage that compounds
semi-annually be sure to set the appropriate preference option.