The Detailed Estimate Tab shows the estimate results.
A complete detailed estimate consists of four sections:
- Estimate Summary: High level details of the estimate
- Breakdown by Year: Account balances as of January 1st of each year
- Breakdown by Month: Account balances as of the 1st of each month
- Transaction Details: All transactions used to compute the estimate
The Estimate Summary is always displayed in the report. The other sections can be turned on and off. (You might want to print the estimate with the transaction details.) To change the sections displayed, click on "Options..." under the Estimate Menu. The following window will be displayed:
Select the sections you want displayed by checking the box next to the name and click the Save button.
Debt Elimination Estimate Not Generated
If the estimate has not been generated (usually because you changed some information in your estimate), you may see the following report:
To generate the estimate, either click on the "Click to Generate Estimate" link or click on the green arrow
in the tool bar. While the estimate report is calculating, you will see the following:
The Estimate Summary Section
There are 3 possible summaries:
- Debt Paid Off Successfully
- Loan(s) Paid Off Successfully - With Debt Remaining
- Debt Not Paid Off - HELOC Limit Reached
Debt Not Paid Off - HELOC Limit Reached
The Estimate Summary will look like this:
Notice that the expenses are way more than the income. The money withdrawn from the HELOC to cover all the expenses exceeded the income and eventually the HELOC limit was reached.
Loan(s) Paid Off Successfully - With Debt Remaining
The Estimate Summary will look like this:
As the report says, the loan was paid off in 30 years. However, not shown in this screen shot - the HELOC balance was not $0 at the end of the term. Some debt still remains after the term of the P&I loans were completed. This usually occurs because the income was not great enough or timely enough to take care of the expenses.
Debt Paid Off Successfully
The debt was successfully paid off faster than it would have taken making regular payments. The Estimate Summary looks like this:
The Estimate Summary shows that the regular repayment method would take 30 years to payoff the debt costing a total of $332,484.31 of which $182,484.31 is interest. Using the HELOC Based System, the debt would be paid off in 14 years and 6 months costing a total of $228,753.58 of which $78,753.58 is interest. Comparatively, the HELOC Based System saves 15.5 years and $103,730.73. Of the interest that was paid in the HELOC Based System, $360.52 was HELOC interest and $78,393.06 was interest on the loan(s). Over the time it took to pay off the debt in the HELOC Based System the average monthly income was $1,750. The average monthly expenses were $1749.14.
The Breakdown by Year / Breakdown by Month Sections
Both of these sections display a table of data. Each row in the table shows the balance of the accounts as of the first day of the month for the stated time period.
The
Debt Balance is the amount of debt remaining using the HELOC Based System. The
HELOC Balance is the balance of the HELOC. (It is not always $0 - this example just doesn't have a non-zero balance at the beginning of each year.) The
Regular Debt Balance is the amount the debt would be at if paid off using the regular payment system was used to pay off the debt.
The Transaction Details Section
Each entry in this table represents one transaction in the process of paying off the debt.
Column
| Description
|
| Date | Transaction date
|
| Description | Purpose of the transaction
|
| Amount | Transaction Amount. (A negative amount is money paid out or interest charged. A positive amount is money coming in.)
|
| Debt Balance | Debt Balance in the HELOC Based System
|
HELOC Balance
| Balance of the HELOC in the HELOC Based System
|
| Cash Balance | Cash being held on the day of the transaction
|
