Payoff Plan: $20,000 in 24 Months
Debt Balance
$20,000
Payoff Target
24 months
Required Monthly Payment by Interest Rate
0% (no interest)
$833/mo
6% APR
$886/mo
+$1,264 interest
12% APR
$941/mo
+$2,584 interest
18% APR
$998/mo
+$3,952 interest
24% APR
$1,057/mo
+$5,368 interest
29.99% APR
$1,118/mo
+$6,832 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.