Planit:Debt Consolidation Calculator

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In this Video you will Learn...
How can I calculate the benefit to my client by consolidating their loans?
• Load data
• Data entry for calculator

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The material in this video may differ somewhat from what you see on your site due to difference in version, jurisdiction, corporate content or access level. Regardless of these differences most of the core functions are consistent across all sites, so you'll be able to benefit by and large from what you learn in this video.

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Planit now has a “Debt Consolidation Calculator” that allows advisors to provide advice and identify the benefits of doing consolidation of debt for a client. This new calculator can be accessed from the normal calculator menu in the navigation panel, or can also be accessed and from the Assets and Liabilities screen when the client has liabilities. Any existing loans you have already entered on the Asset & Liabilities will pre-populate the calculator. All you have to do is identify the loan rates and terms of each loan to be able to do a full analysis. That can now be done right from within the record on the Asset Screen.

Home and Mortgage

The Home and Mortgage tab is where you can enter information about your mortgage your client's currently hold. You can enter the approximate value of the home.

Mortgage Balance would be the current balance of the mortgage owing.

Interest Type this would the type of interest your clients have on their mortgage. This could be fixed, variable, fixed interest or variable interest.

Interest Rate enter the current interest rate on the mortgage.

Payment Amount this would be the payment your clients are currently making.

Payment Frequency enter the frequency of the payment above.

Penalty Cost this could be if any a penalty cost if you need to break the mortgage.

After inputting all the fields when you hit "Calculate" a nice graph shows up showing you the total years it will take to pay off this mortgage.


Loan and Credit Cards

This tab allows you to enter in any other loans, credit cards or line of credits that your client's may also hold.


Consolidated Assumptions

This is where you can enter in assumptions as per the consolidation of all of the debt. The clients may want to include a lump sum that they have sitting in their savings account or may have a gift of money they want to add to the debt. You would enter these assumptions here along with any additional payments they wish to make. Once the assumptions have been completed you then can hit the "Calculate" button and move over to the "Results" tab.



Here you’ll see the results tab for the calculator comparing the current amortization period given the current liabilities the client has compared with the consolidated loan results. The amortization has been reduced from 23 years to 16.6 years. The calculator can illustrate fixed rate loans, variable rate loans or a combination of both.


There is also an attractive PDF report that can be generated using this calculator that demonstrates the benefits of being more efficient in their debt portfolio.

This tool is also being introduced as a free standing consumer facing calculator that will do a debt consolidation analysis to illustrate the value of an all in one account.