Debt Payoff Strategy: Balance, APR, and Monthly Payment
Debt payoff gets clearer when you can see the relationship between balance, APR, monthly payment, and time.
Payment size drives momentum
A payment that barely covers interest can keep a balance alive for a long time. Testing a higher fixed payment shows how much time and interest may be saved.
Snowball and avalanche both have a role
The snowball method prioritizes small balances for motivation. The avalanche method prioritizes higher APR balances to reduce interest. The best strategy is one you can keep following.
Watch for new charges
A payoff plan assumes the balance is moving down. Adding new charges to the same account can erase progress even when payments look consistent.
Next steps