Payoff Plan: $20,000 in 12 Months
Debt Balance
$20,000
Payoff Target
12 months
Required Monthly Payment by Interest Rate
0% (no interest)
$1,667/mo
6% APR
$1,721/mo
+$652 interest
12% APR
$1,777/mo
+$1,324 interest
18% APR
$1,834/mo
+$2,008 interest
24% APR
$1,891/mo
+$2,692 interest
29.99% APR
$1,950/mo
+$3,400 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.