Payoff Plan: $20,000 in 60 Months
Debt Balance
$20,000
Payoff Target
60 months
Required Monthly Payment by Interest Rate
0% (no interest)
$333/mo
6% APR
$387/mo
+$3,220 interest
12% APR
$445/mo
+$6,700 interest
18% APR
$508/mo
+$10,480 interest
24% APR
$575/mo
+$14,500 interest
29.99% APR
$647/mo
+$18,820 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.