Is Absurd.why Is This?
Q: I have two things in my debt reduction planner. A student loan which I pay $160.00 per month and a Car Loan/Consolidation that I pay $665.00 per month. I recently printed out my monthly report for January and it stated the following: The current balance of Student Loan is $4,780.00. According to your debt plan, this account will be out of debt on 2/13/00. (Wow, a little more than a week?!?!?) The current balance of Car/Consolidation Loan is $13,916.00. According to your debt plan, this account will be out of debt on 6/1/01. I can see that the second one may be accurate, but the Student Loan figure is absurd. Why is this??
A: The DRP is not designed to work with amortized debt -- only with revolving debt. If you remove the amortized debt from the plan, I believe it will work correctly.