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Save Money   ->  Pay Down Non-Tax-Deductible Debt as Quickly as Possible

Pay Down Non-Tax-Deductible Debt as Quickly as Possible

Try one of the loan calculators on the Calculators page, to see how much interest you can save by paying down your debt more quickly!

We will assume:

bulletYou have a $100,000 loan.
bulletThe interest is not tax deductible.
bulletYour interest rate is 7.5%.

Your monthly payment amount and the total interest paid will vary greatly depending on how long you take to pay off your mortgage.

The following table shows that you can save almost $80,000 by paying off a $100,000 loan over 10 years instead of 25 years:

Loan Term
(years)		 Monthly Loan Payment
@7.5% Interest		 Total Loan
Payments		 Total
Interest Paid		 Amount Saved Using
Shorter Term
25 $   739 $ 221,697 $ 121,697 $         0
20 $   806 $ 193,342 $  93,342 $ 28,355
15 $   927 $ 166,862 $  66,862 $ 54,835
10 $ 1,187 $ 142,442 $  42,442 $ 79,255

Tax Tip:  Pay down all non-tax-deductible debt, then see our Save and Invest page.

Revised: July 10, 2020

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