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See exactly how much time and money you can save by accelerating your debt payments. Escape the interest trap faster.
Your current remaining principal balance.
What you normally pay (or the minimum due).
Any extra cash you throw at the principal!
Time Saved
1 Yrs 1 Mo
Off your debt sentence!
Interest Saved
₹42,272
Money kept in your pocket.
Standard Route
Months until Debt-Free
3 Yrs 7 Mos
Total Interest Paid
₹1,36,892
Accelerated Route
Months until Debt-Free
2 Yrs 6 Mos
Total Interest Paid
₹94,620
When you make an extra payment above your standard EMI, 100% of that extra amount goes directly toward reducing your principal balance, not interest. Since interest is calculated on the remaining principal, reducing it faster drastically decreases the total interest you are charged over the life of the loan.
It's a strategy where you make minimum payments on all your debts, but aggressively put all extra cash towards the debt with the absolute highest interest rate (like Credit Cards or Personal Loans). Once that is cleared, you move to the next highest rate. It saves the most interest mathematically.
This is called 'negative amortization'. It means your debt is actually growing every month despite making payments. You MUST increase your monthly payment immediately above the 'Interest-only' threshold, otherwise you will never escape the debt.