Payoff Plan: $10,000 in 12 Months
Debt Balance
$10,000
Payoff Target
12 months
Required Monthly Payment by Interest Rate
0% (no interest)
$833/mo
6% APR
$861/mo
+$332 interest
12% APR
$888/mo
+$656 interest
18% APR
$917/mo
+$1,004 interest
24% APR
$946/mo
+$1,352 interest
29.99% APR
$975/mo
+$1,700 interest
Debt Payoff Strategies
Avalanche method: pay minimums on all debts, throw extra money at the highest-rate debt first. Mathematically optimal — saves the most interest. Snowball method: pay off smallest balances first for psychological wins. Research shows snowball leads to better follow-through for most people despite costing slightly more in interest.