Debt Restructuring Calculator

See how bi-weekly payments can make it easier to eliminate your debt quickly.

One of the simplest (and least known) ways to eliminate debt quickly is to switch from a monthly payment schedule to a bi-weekly payment schedule. It sounds a little counterintuitive, but this actually means you make two extra payments every year, so you eliminate your debt faster.

Here’s how it works:

  1. With a monthly payment schedule, you make 12 payments in a year.
  2. When you go to a bi-weekly payment schedule, the payment amount is about half of what you pay on a monthly schedule.
  3. HOWEVER, on a bi-weekly payment schedule, you make 26 payments in a year (52 weeks, divided by 2).
  4. So while your payments are roughly half of what you pay on a monthly schedule, because you make 26 payments instead of 24, you wind up paying more debt off every year.

The faster you pay off debt, the less interest gets added. Since interest is added at the end of every month, debt restructuring means fewer months where interest charges are tacked onto your total bill.

Think about it – for every year you use a bi-weekly schedule, that’s one less month of added interest on your loan or that line of credit. That can be a huge difference on loans like your mortgage or even just on your credit cards. For a 4-year auto loan, that would mean you could finish paying the full amount off in the first few months of that last year. With a mortgage, you could save years on the payoff, which would save you thousands on added interest.

The calculator below is designed to help you assess the value of moving to a bi-weekly payment schedule on a single line of credit. If this looks like a good option, call your lender to see if they’ll allow you to adjust your payment schedule. If you have multiple loans you want to restructure, look online for a reputable debt restructuring service provider.

It’s important to note that restructuring and debt consolidation are two different things. Debt restructuring won’t save you money every month or every year – in fact, you may end up paying slightly more so you can eliminate your debt efficiently. Debt consolidation is where you can reduce your monthly payments so it’s easier to eliminate debt on a restricted budget. As always, if you have question or need more information, call Consolidated Credit today at or complete our Debt Analysis form to request help online.