Payoff Plan: $50,000 in 12 Months
Debt Balance
$50,000
Payoff Target
12 months
Required Monthly Payment by Interest Rate
0% (no interest)
$4,167/mo
6% APR
$4,303/mo
+$1,636 interest
12% APR
$4,442/mo
+$3,304 interest
18% APR
$4,584/mo
+$5,008 interest
24% APR
$4,728/mo
+$6,736 interest
29.99% APR
$4,874/mo
+$8,488 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.