Payoff Plan: $5,000 in 24 Months
Debt Balance
$5,000
Payoff Target
24 months
Required Monthly Payment by Interest Rate
0% (no interest)
$208/mo
6% APR
$222/mo
+$328 interest
12% APR
$235/mo
+$640 interest
18% APR
$250/mo
+$1,000 interest
24% APR
$264/mo
+$1,336 interest
29.99% APR
$280/mo
+$1,720 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.