The HELOC Details Tab is where you enter all the details about your HELOC.
This information is required about your HELOC:
| Credit Limit | The maximum amount available to you on the HELOC. |
| Initial Amount Owed | Beginning balance on the HELOC when you start the system. The date My Debt Elimination Calculator considers to be the start date is shown on the screen. The start date is determined by the entries in the P&I Loan Details Tab. Note: If you change the details of the P&I loans, then the start date may change.
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| Injection Amount | Dollar amount you plan to "inject" from your HELOC into your primary loan when the HELOC balance is $0. For an initial value, round your primary loan payment up to the nearest thousand (i.e. if the payment is $1,342 use $2000.) The Calculate Optimal Injection Amount button is discussed in this help page. |
| Interest Rate | The interest rate on a HELOC is variable. This means that it changes over time. (The interest rate on my HELOC is set every three months.) For this reason, My Debt Elimination Calculator lets you define multiple interest rates along with a date the interest rate started, an effective date. Maintaining the list of interest rates is optional. This feature was added for people who want to maintain a very detailed estimate. For those who want just want to get a ballpark estimate, one entry will be fine. In fact you could be lazy and not define any interest rates. If an effective interest rate is not defined, My Debt Elimination Calculator will use a default value of 10%. |
If you don't have a HELOC (or some other Line-of-Credit) and you want to use
My Debt Elimination Calculator to evaluate the HELOC Base System of Debt Elimination, enter a credit limit that seems reasonable and let the system use the default 10% interest rate. That will be good enough information to use for evaluation purposes. It turns out that the interest rate on the HELOC is not a significant factor to the overall success of the system. Some of the published materials on the subject prove that the system can be effective even if the interest rate on the HELOC gets very high (e.g. greater than 25%.)
To edit or enter the Credit Limit, Initial Amount Owed and Injection Amount, click the Enter HELOC Details button.
To define an interest rate value effective as of a certain date, click the Add button.
To delete an interest rate, select the interest rate in the list and click the Delete button.
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My Debt Elimination Calculator does not allow you to edit an existing entry in the interest rate list.)
HELOC Details Window
This window is where you enter the details for the HELOC. Click the Save button to save the information you entered. If you want to discard any data you entered or changed, click on the Cancel Button.
Interest Rate Window
This window is where you enter the HELOC interest rate details. Click the Save button to save the information you have entered. If you want to discard any data you entered or changed, click on the Cancel Button.
Clicking the down arrow in the Effective Date field shows a calendar from which you can select a date.
