Question 1

Should I pay off loans or save an emergency fund first?

Accepted Answer

Build a $1,000 mini emergency fund first, then attack high-interest debt (above 7%), then build a full 3-6 month emergency fund. This hybrid approach protects you from disasters while still making progress on debt. Pro Tip: Post-divorce, your emergency fund matters MORE—you don't have a partner's income as backup. Statistic: Dads with even a $1,000 emergency fund are 78% less likely to miss child support payments during unexpected expenses

Question 2

Can I refinance loans after divorce?

Accepted Answer

Yes, and you should explore it. Divorce changes your debt-to-income ratio, which can work for or against you. If your credit is strong (700+), you may qualify for lower rates. If divorce damaged your credit, wait 6-12 months to rebuild before applying. Pro Tip: Shop at least 3 lenders—credit unions often beat banks by 0.5-1.5% on personal and auto loans. Statistic: Average refinance savings: $1,800/year on a $25,000 car loan with a 2% rate reduction

Question 3

How do extra payments actually work?

Accepted Answer

Extra payments go directly to principal, reducing the balance faster. Since interest is calculated on the remaining balance, every extra dollar has a compounding effect—you pay less interest next month, and even less the month after that. Statistic: An extra $100/month on a $25,000 loan at 6.5% saves $1,800 in interest and pays it off 11 months early

Question 4

What's the difference between avalanche and snowball methods?

Accepted Answer

Avalanche: Pay minimums on all debts, throw extra money at the HIGHEST interest rate first. Saves the most money mathematically. Snowball: Pay off the SMALLEST balance first for quick psychological wins. Both work—avalanche saves more, snowball keeps you motivated. Pro Tip: If you have credit card debt at 20%+ APR, avalanche is the clear winner. For similar-rate loans, snowball's momentum matters more. Statistic: Avalanche saves 15-20% more in interest, but snowball users are 14% more likely to become completely debt-free

Question 5

Will my ex's debt affect me after divorce?

Accepted Answer

It depends on the debt type. Joint debts (both names on the loan) remain YOUR responsibility regardless of what the divorce decree says. If your ex stops paying a joint debt, creditors come after you. Individual debts in their name only don't affect you. Pro Tip: Refinance joint debts into individual names ASAP. This is the only way to truly separate financial liability.

Question 6

Should I consolidate my loans?

Accepted Answer

Consolidation makes sense when: you have multiple high-interest debts, you qualify for a lower rate, and you won't rack up new debt on freed-up credit cards. It simplifies payments from many to one. Avoid if the new rate isn't meaningfully lower. Pro Tip: Never consolidate student loans into private loans—you lose federal protections like income-driven repayment and forgiveness programs. Statistic: Average consolidation loan rate: 8-12% vs. credit card average of 22%. That difference saves thousands.

Question 7

What happens to joint loans in divorce?

Accepted Answer

The divorce decree assigns responsibility, but it doesn't change the loan contract. If your name is on it, you're still legally liable. Options: refinance into one name, sell the asset and pay off the loan, or negotiate a lump-sum buyout in the settlement. Pro Tip: Request a credit report freeze or monitoring service during divorce proceedings. Protect yourself proactively.

Question 8

How do I prioritize which loan to pay first?

Accepted Answer

Priority order: 1) Any loan in danger of default (protect your credit). 2) Highest interest rate debt (usually credit cards). 3) Debts with the smallest balance (quick wins). 4) Car loan (you need reliable transportation for custody). 5) Student loans (usually lowest rate, most flexible). Pro Tip: Make a list of every debt with: balance, rate, minimum payment, and monthly cost. This clarity alone reduces financial anxiety. Statistic: Dads who create a written debt payoff plan eliminate debt 2.3x faster than those who 'wing it'

Question 9

What if I can't afford my loan payments after divorce?

Accepted Answer

Contact your lenders immediately—most offer hardship programs (deferred payments, reduced rates, extended terms). Never just stop paying. Options: income-driven repayment for student loans, loan modification for auto loans, and balance transfer for credit cards. Pro Tip: Call your lender and say: 'I'm going through a divorce and need to discuss hardship options.' Most have formal programs.

Question 10

How does this calculator handle different loan types?

Accepted Answer

This calculator uses the standard amortization formula (P × [r(1+r)^n] / [(1+r)^n - 1]) which applies to most fixed-rate loans: car loans, personal loans, student loans, and credit card payoff plans. Variable-rate loans may differ—use the current rate as a starting point. Pro Tip: For credit cards, enter your current balance as the loan amount and your card's APR as the interest rate. Set the term to how quickly you want to be debt-free.

Loan Payoff Calculator

How to Use This Calculator

How This Calculator Works

Choose your loan type

Enter loan details

Add extra payments (optional)

View your payoff chart

Check budget impact

Loan Payoff FAQ

More Free Calculators

Child Support Calculator

Parenting Time Calculator

Budget Calculator

Debt Payoff Calculator

Emergency Fund Calculator

Net Worth Calculator

Overnight Calculator

Kid Expense Tracker

We value your privacy