Frequently asked questions
How much faster does a larger payment clear the debt?
Significantly. On $20,000 at 15%, paying $500/month takes about 56 months. Increasing to $750/month cuts it to 33 months and saves over $3,000 in interest. Every extra dollar goes directly to principal.
What if I can only afford the minimum?
Minimum payments are designed to keep you in debt longer. Even $50–100 above the minimum makes a meaningful difference. If you truly cannot pay more, consider a balance transfer or consolidation at a lower rate.
Should I save or pay off debt first?
Keep a small emergency fund (1–2 months expenses), then aggressively pay debt — especially high-rate debt. The guaranteed 'return' of eliminating a 15–25% interest rate exceeds most investment returns.
Does this work for multiple debts combined?
Yes, if you enter the total balance and the weighted average rate. For a more detailed multi-debt strategy comparison (avalanche vs snowball), see the Credit Cards Payoff Calculator.
Why is my total paid so much more than the original debt?
Interest accumulates on the remaining balance every month. The longer you carry debt, the more interest compounds on itself. Higher rates and lower payments magnify this effect dramatically.