For families and for small businesses, high-interest debt is one of the most expensive things to carry. The interest is charged on the balance every month, so the longer it lasts, the more it costs.
See the real cost
Take the balance, the interest rate (APR) and the monthly payment, and work out how many months it takes to pay off and how much interest is paid along the way. The answer is often surprising.
Add a little extra
Any amount above the payment goes straight to the balance, so less interest is charged the next month, and the month after. That is why a small extra payment saves more than it seems.
More than one debt?
- Avalanche: pay extra on the highest interest rate first. It saves the most interest.
- Snowball: pay extra on the smallest balance first. Quick wins help many people keep going.
Our debt payoff planner shows the months and the interest saved.
General information, not financial advice.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
