Adding Extra Lump Sum Debt Payments

To help pay off debt faster, an Extra Lump Sum Payment can be added in a specific month

Extra Lump Sum Payments are added to a specific month which great if you expect to receive a bonus payment or commission income at specific points each year.

Any value in Blue can be double clicked and a specific override value entered.

The Extra Lump Sum Payment will be applied in that specific month and follows the repayment strategy and interest rate threshold rules.

The Extra Lump Sum Payment will be applied to the debt payoff plan until there are no more debts with an interest rate above the interest rate threshold. When there are no debts remaining, or the debts remaining have lower interest rates, and the Extra Lump Sum Payment will no longer be applied.

For that reason, if all debts with an interest rate above the interest rate threshold have been paid off, then it’s possible that none of the Extra Lump Sum Payment will be applied.

For example, if the interest rate threshold is set to 4%, then a mortgage with an interest rate of 2.49% would not receive any Extra Lump Sum Payments, but a vehicle loan with an interest rate of 5.99% would receive Extra Lump Sum Payment until that debt is paid off.