Loan Calculator & Debt Planner

Five things people in South Africa believe about debt, and how to check each one in a minute. MYTH 1: "A smaller instalment means a cheaper loan." R50,000 at 27% a year over 24 months: about R2,719 a month, R65,256 in total. The same loan over 60 months: about R1,527 a month, but R91,606 in total. The lower instalment costs you R26,350 more. The loan calculator shows the instalment, the total interest and the total repayment for any amount, term and rate. MYTH 2: "One consolidation loan always makes debt cheaper." Sometimes it does, sometimes it only makes the debt longer. Add your store cards, credit card and personal loans to the Repayment Plan and see the date you finish and the interest still ahead. Then put the consolidation offer into the loan calculator and compare the totals yourself. MYTH 3: "If I can afford the instalment, I can afford the loan." Enter your income and what you already pay each month. The app shows the instalment that still leaves room in your budget, and how much of your salary already goes to debt: under 30% is comfortable, above 50% is critical. MYTH 4: "Paying a little extra makes no difference." Add R300 a month to one loan and see how many months you cut and how much interest you keep. In the Repayment Plan, once a loan is cleared its instalment rolls over to the next one. MYTH 5: "All quotes are basically the same." Put two quotes side by side and see which costs less in total, not just per month. If a lender, or a mashonisa, quotes a rate per month, multiply it by 12 to get the yearly rate first. THE REPAYMENT PLAN Enter each debt with the balance, the yearly rate and the monthly instalment. Choose highest rate first (cheapest) or smallest balance first (quickest wins). The app warns you if an instalment does not even cover the monthly interest, a sign that the debt is growing. Useful at month-end, and before you decide on debt review. ALSO: "Which option is better value?" on the home screen compares two pack sizes by the price per kg or litre. GOOD TO KNOW Under the National Credit Act, interest on unsecured loans is capped at the repo rate plus 21% a year, fixed on the day you sign, and initiation and monthly service fees are capped too. Every lender must be registered with the NCR: check on https://www.ncr.org.za This app only calculates: it does not lend and is not linked to any lender, the NCR or a government body. Figures are estimates from the numbers you enter, and stay on your phone.

New version. Work out the instalment, interest and total on any loan, compare two quotes and build a payoff plan for the debts you already have: see when you will be debt-free, which debt to clear first and what an extra payment saves. Works offline and keeps your numbers on your phone.