How do you calculate the cost of a debt?

Answer by  olive8 (911)

To do so you need to consider how much interest you are going to pay over the life of the debt.

Answer by  Mgarcia (752)

You can calculate your debt by getting the latest copies of all your bills for amounts owed in the past, this would not include current phone bills, electricity and such unless you are behind on them. Take these bills and total up what is due on them. Remember unless paid off right away you will pay more because of interest.

Answer by  barkley (951)

Multiply the payment amount times the number of payments to calculate the total cost of a debt. If you paid any additional costs such as application fees or processing fees you should include those costs also.