Getting out of debt is typically the best investment you can make. It may produce double-digit returns by reducing the amount of interest paid and the time it takes to get out of debt. Iowa State University Extension's PowerPay© computer analysis can help you chart a course for debt reduction.
How does the PowerPay© computer analysis program work?
- This program requires a commitment to stop borrowing/charging until current debts are paid.
- As soon as one debt is paid off, you apply the monthly payment from that debt to the next debt.
- These payments are called power payments. The total monthly payment is not increased – only the distribution of payments changes.
You can...
- Look at savings in interest costs and months to repay on loans, credit cards, and other debt
- See impact of adding a little extra to the total monthly payments
- Calculate savings from making a lump sum payment at a specified future date
- Explore possible savings from consolidating debt
How do I get started? You now have three options...
Do-it-yourself! Visit www.powerpay.org and follow the instructions there to enter information about your debts and see how much difference the PowerPay© approach makes.
or
Print the PowerPay© worksheet (pdf). Fill out the worksheet and mail to Iowa State University Extension's Iowa Concern office. Your personal, confidential printouts will be mailed to you. There is no charge to Iowa residents for this service. Out-of-state residents should send a check for $5 (payable to Iowa State University) along with the worksheet.
or
Complete an on-line worksheet and submit information electronically to Iowa State University Extension's Iowa Concern office. The online worksheet is located on a secure site. Your information will be kept confidential. An Extension staff member will do the analysis and send it back to you.
… hundreds of dollars can be saved
on interest in addition to paying off debts
months or years earlier.
Note: PowerPay© was developed by Utah State University Extension, which also operates the on-line version on a secure website.