Updated: Jul 13, 2023
Our cutting-edge debt assessment tool is created for evaluating prospective debt situations before committing to any financial obligations. Managing debt is one of the biggest challenges for an individual or business owner. While it's not easy to deal with debt, we offer an effective tool to significantly reduce your debt burden by visualizing the profile. Our Ten-years debt elimination calculator can give you insight into eliminating debt in 10 years. Utilizing this tool can gain valuable insights into potential avenues for debt reduction. To cater to the needs of our diverse clientele, we have taken special care to develop a tool that can help you comply with Islamic rulings. We understand the importance of adhering to religious guidelines, particularly the prohibition of usury (riba) in Islamic law. We strongly encourage thorough assessments and careful consideration before making mortgage decisions. It is essential to take into account the long-term implications of your choices. Our tool serves as a reliable aid in responsible financial planning, offering insights into effective strategies for debt reduction. While achieving complete debt elimination may pose challenges, our tool provides realistic projections and actionable strategies to impact your debt situation positively. We aim to equip individuals with the necessary knowledge and tools to regain control of their finances and work towards a debt-free future. Our debt assessment tool empowers you to evaluate your debt profile accurately. Focusing on providing realistic strategies for debt reduction, and our commitment to Islamic principles, we offer a valuable resource for individuals seeking financial freedom. We encourage utilizing of our tool to make informed decisions and pave the way toward a brighter financial future.
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 are zero because the income of the Applicant (i.e., $40,000) and Co-Applicant income (i.e., $35,000) 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 "$35,000"; 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 10 years. The amortization period is not displayed because the calculator has the default amortization period of "10 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.