Buying a house and paying for your education may be considered to be essential debts.

Be smart about paying back those two large debts as quickly as possible.

Download this loan repayment spreadsheet [422 Kb]. 2

Plug in the values and your interest rate. View the repayment worksheet to see what you can do to pay off your house (or education) in the shortest possible time.

Name withheld
Name withheld Hamilton, NZ.
“We first decided to purchase our own home when friends told us that paying rent was “dead money” and went ahead and made the purchase. Our mortgage payments at first were more than the rent we had been paying and we were dismayed when we received our first statement to see that $97 out of every $100 was to pay the interest. It seemed that interest payments were even more dead than the dead rent money considering we also had rates, repairs and development costs on top and we wondered whether we had done the right thing in becoming home owners.

As the first 5 years of scraping by passed we noticed that our mortgage repayments were now slightly less than the average rentals and the proportion of interest to principal charges had improved slightly to around $85 interest and $15 principal, better ,but still a source of dismay.

After another 8 years things were getting brighter and we were able to increase our monthly installments so that the principal repayments were now more than the interest charges and very soon with great relief we were mortgage free.

After our years of hardship we have decided to resist the temptation to “trade- up” and continue the freedom of being mortgage free. We are now able to save money each week so as to use it for some of the finer things of life although not extravagantly and have great peace of mind and no debts.

Freedom from debt is freedom indeed.

Download this loan repayment spreadsheet [422 Kb].


1. Images of money from Received 13 Nov 2011.

2. Spreadsheets by Dr Jon Wittwer.