The Credit Repair Edition is popular debt reduction calculator is design to help you improve your credit score by using the snowball effect to reduce your credit card balances to specific levels. Instead of waiting till a card is completely paid off to the snowball to the next debt.
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The Debt Reduction Calculator – Credit Repair Edition is exactly the same as the original debt reduction calculator, so all of the instructions for the debt reduction calculator may also apply to the credit repair edition.
Using the Credit Repair Edition
All the instructions for the debt reduction calculator also apply to the credit repair edition. The credit repair spreadsheet just adds another level on the top, and therefore a bit more complex. Keep in mind that there are many factors influencing the credit score. This spreadsheet specifically has to do with reducing the amount you owe, relative to credit limits.
- “Proportion of credit lines used.
- “Proportion of installment loan amounts still owing.
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Reduce To: This is the new column in the credit repair edition that lets you indicate that you want to lower a balance to a specific amount. If you left this column blank, the spreadsheet would function just like the original debt reduction calculator.
What Balance-to-Credit-Limit Ratio is Ideal? This is also known as the debt-to-credit ratio or utilization ratio. I have seen conflicting information in this and there seems to be no one answer. The only thing I can advise is that you seek the help of a professional credit repair specialist. I could say try using a default of 20%, but that isn’t always true.
Other Notes about using the Credit Repair Edition:
(1) In the summary table, the column “Met 1st Goal” estimates that date when you will have reached the balances entered in the “Reduce To” column.
(2) The strategy you choose for paying off your debt will also determine the order that debts payoff accomplish.