Getting Comfy with Your Money

Chapter 4:
How Income Companion Works
Calculators Page

Payoff Plan for One Debt
Multiple Debt Snowball
Credit Card Amortization

The Calculators page in Income Companion provides you with the tools for calculating an income net hourly rate, planning short-term savings, analyzing loan options, and planning a path out of debt.

You can also store links to calculators elsewhere on the Internet.

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Planning Short-Term Savings

The Saving Calculators in Income Companion are handy for evaluating annuities* and interest-bearing accounts. They are not a substitute for consulting with a financial advisor for investing advice.

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Analyzing Loan Options

Use the loan calculators to analyze existing loans and to evaluate loans you are contemplating.

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Planning a Path Out of Debt

Build a payoff plan for one debt or create a debt snowball to pay off two or more debts as quickly as possible. Use the credit card amortization feature to pay off a large card balance.

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* Annuities are essentially insurance contracts. You pay a set amount of money today, or over time, in exchange for a lump-sum payment or income stream in the future.



Payoff Plan for One Debt

To build a payoff plan for one debt, you have the option of using a monthly payment amount or the number of monthly payments you want to make.

While building a payoff plan, you can bounce back and forth between the calculation methods to check out various payment amounts and number of monthly payments until you find what works best.

You add the payoff plan on the Bills page either as a new bill or as a payment schedule for an existing regular bill. If you are not comfortable with the impact of the plan on your Incredibly Cool Budget, you can go back and create another plan that will fit better within your current financial situation.



Multiple Debt Snowball

A debt snowball accelerates the paying off of multiple debts, including credit cards, by using the "rollover" method. As soon as one debt is paid off, the freed-up payment amount from that debt is used to help pay down the next debt even faster. The process continues until all debts are paid off. The debt snowball is the most cost effective, fastest, and emotionally satisfying way to get completely out of debt.

In Income Companion you customize a debt snowball by choosing which debts to include, the order in which the debts are paid off, and the total amount you want to pay monthly.

The Debt Snowball Plan calculated by Income Companion can be printed and exported to a spreadsheet file.

You follow the plan in Income Companion by adding the snowball to your Bills and/or Charges pages.

  • For bills, either add a new bill or add the payment schedule to an existing bill.
  • For a credit card, either add the snowball payment schedule or add an amortization schedule for the credit card that matches the snowball payment schedule.

You will see in your Incredibly Cool Budget how the snowball plan affects your future spending plan. If you are not comfortable with how the snowball impacts your future finances, you can go back and adjust the snowball to create a plan that better fits your financial situation.



Credit Card Amortization

A customized payoff plan for a credit card with a large balance can be created with the Income Companion amortization feature.

The payoff plan can be based on your choice of a monthly payment amount ...

... or how many payments you want to make.

When you click on the Apply button, the amortization schedule is calculated and automatically added to your Incredibly Cool Budget.

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If you are not comfortable with how the amortization schedule affects your Incredibly Cool Budget, you can recalculate the plan.







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