Payoff Plan: $5,000 in 12 Months
Debt Balance
$5,000
Payoff Target
12 months
Required Monthly Payment by Interest Rate
0% (no interest)
$417/mo
6% APR
$430/mo
+$160 interest
12% APR
$444/mo
+$328 interest
18% APR
$458/mo
+$496 interest
24% APR
$473/mo
+$676 interest
29.99% APR
$487/mo
+$844 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.