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http://www.creditkarma.com/ https://www.mint.com TAKE CONTROL OF YOUR FINANCES! http://newsline.depaul.edu/Info/Pages/FAQsforStudents.asp x http://www.creditkarma.com/article/hard_inquiries_and_soft _inquirieshttp://www.creditkarma.com/article/hard_inquiries_and_soft _inquiries http://www.oprah.com/money/Suze-Ormans-Advice-for- Consolidating-Student-Loans http://www.finaid.org/loans/consolidationfaq.phtml

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PMT Formula

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How to set-up an amortization table in Excel Month Beg BalancePaymentInterestPrincipal End Balance 0 10,000.00 1. What is the duration of the loan in months? Type in 0 and then 1. Select both numbers then drag down to put in total months.

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Setting Up the Formulas Month Beg BalancePaymentInterestPrincipal End Balance 0 10,000.00 1 =F2 =PMT(RATE/ 12),Months, Loan =B3*0.06/ 12 =C3-D3 =B3-E3 Calculating monthly payment. Put an equal sign in the cell. Click on Formulas. Click on Financial. Click on PMT. We need to put in three numbers followed by a comma

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The Bill… You have a $1500 balance on a MasterCard that charges a 19% interest rate Minimum payment is 2% or $25

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Option 1 – Minimum Payment 2% Month Beg BalancePaymentInterest Principa l End Balance 0 1,500.00 1 F2 =MAX(B3*0.0 2,25) =B3*.19/12 =C3-D3 =B3-E3 ASSUMPTIONS: 19% Interest Rate, $1,500 Balance and 2% Payment

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Option 1 – Minimum Payment 3% Month Beg BalancePaymentInterestPrincipal End Balance 0 1,500.00 1 F2 =MAX(B3*0.0 3,25) =B3*.19/12 =C3-D3 =B3-E ASSUMPTIONS: 19% Interest Rate, $1,500 Balance and 3% Payment

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Flat Monthly Payment Decide how much you can afford to pay monthly ▫Has to be more than the minimum ▫Example: $50 or $100 per month Replace the Payment with your choice How long will it take to pay off the balance? How much interest do you pay?

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Option 2 – Flat Amount Payments Month Beg BalancePaymentInterestPrincipal End Balance 0 1,500.00 1 F2 =50 =B3*.19/12 =C3-D3 =B3-E3 ASSUMPTIONS: 19% Interest Rate, $1,500 Balance and $50/month Payment

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Pay off the Balance in Set Time Use PMT function to determine your monthly payment ▫Let’s say 2 years What will your monthly payment be? How much interest do you pay?

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Option 3 – Time Payments Month Beg BalancePaymentInterestPrincipal End Balance 0 1,500.00 1 F2 =PMT(0.19/12, 24,-1500) =B3*.19/12 =C3-D3 =B3-E ASSUMPTIONS: 19% Interest Rate, $1,500 Balance and 24 month duration

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