Updated: Jul 13, 2023
Our debt elimination tool is designed to empower individuals with the ability to assess their debt profile before committing to any financial obligations. We understand that eliminating debt is a pressing challenge in today's world. While complete debt elimination may not always be feasible, our tool offer strategies significantly reduce debt burdens. Our unique tool focuses on aligning with Islamic principles, as we recognize the importance of adhering to the prohibition of usury (riba) within the Islamic faith. By considering these principles, we ensure that our tool provides accurate calculations and options that are ethically and religiously acceptable for Muslims. There are some halal mortgages available, but they are not truly halal. The core purpose of our debt elimination calculator is to offer a clear understanding of how your debt profile can be transformed within a fifteen-year timeframe, moving away from the conventional full amortization period. This knowledge is vital for individuals looking to manage their debts and work towards financial freedom proactively. We strongly emphasize the necessity of thorough assessments before making any mortgage-related decisions. Our tool encourages responsible financial planning, urging users to consider the long-term implications of their choices. The fifteen-year debt-eliminating calculator gives you valuable insights into effective debt-reduction strategies aligning with your financial goals. While achieving complete debt elimination may be challenging, our tool provides realistic projections and actionable insight that can significantly impact your debt situation. We firmly believe in equipping individuals with the knowledge and tools necessary to take control of their finances and work towards a debt-free future. Our eliminating debt tool offers you the means to accurately assess and evaluate your debt profile. By incorporating Islamic Shariah compliance and promoting responsible decision-making, we empower individuals to make informed choices that align with their financial objectives. With a focus on reducing debt burdens and providing a clear path to debt elimination within fifteen years, our tool is an invaluable resource for anyone seeking financial freedom.
This calculator is designed to help people plan effectively before purchasing a property to decide whether to buy a property with the mortgage or keep renting until adequate finances are built up. Look for Buy vs. Rent cost difference in the calculation summary, and if the rental expense is reasonable and affordable, then just rent the house until enough cash is available in the pocket for purchasing the home and vice-versa.
Currently, the "TO BORROW" and "PAY AFTER INCOME" amount is zero because the income of the Applicant (i.e., $30,000) and Co-Applicant income (i.e., $25,000) is adequate to cover the mortgage amount, assuming you enter other fields (i.e., Renting, House expenses, taxes, insurance, groceries, utilities, etc.) correctly reflect your finances. Try to reduce the Applicant's income to say "$25,000"; the "TO BORROW" and "PAY AFTER INCOME" will display some value, meaning your income is inadequate to cover the mortgage and expenses, and you cannot pay off a mortgage in 15 years. The amortization period is not displayed because the calculator has the default amortization period of "15 years".
To learn more, Observe the change by modifying a few values in the input field to learn about how does impact your selection vs. result. Enter all values except the last one where it says "ENTER FROM TO BORROW," you need to get into the value calculated in the first field on the top that says "TO BORROW" After entering, you will notice that the value under "TO BORROW" goes to zero, i.e., your home value equals borrowing. It is ultimately up to the user to effectively plan for borrowing and, at the same time, whether there is a possibility to borrow it all depending on the specific situation of person to person.
DISCLAIMER: We strive to offer users accurate information to the best of our knowledge. However, laws are subject to change; therefore, the user assumes full responsibility and should utilize the information on our website and this tool as a reference per our terms and conditions. If you believe any part of the calculation is incorrect or contains errors, we kindly request your feedback here.