Payoff Plan: $30,000 in 12 Months
Debt Balance
$30,000
Payoff Target
12 months
Required Monthly Payment by Interest Rate
0% (no interest)
$2,500/mo
6% APR
$2,582/mo
+$984 interest
12% APR
$2,665/mo
+$1,980 interest
18% APR
$2,750/mo
+$3,000 interest
24% APR
$2,837/mo
+$4,044 interest
29.99% APR
$2,924/mo
+$5,088 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.