Payoff Progress
Professional User Guide
1. Interest vs. Principal
High-interest debt (like credit cards) costs more every month you carry a balance. Increasing your payment by even $50 can save thousands in interest.
2. Payoff Strategy
Use this tool to experiment with different payment amounts. If your monthly payment is too close to the interest charge, your balance will barely move.
Frequently Asked Questions
What is the fastest way to pay off debt?
The fastest ways are the debt avalanche (paying highest interest first) or debt snowball (paying smallest balance first). Both require consistent extra payments.
How does extra payment affect my loan?
Extra payments go directly toward the principal balance, which reduces the amount interest is calculated on, shortening your loan term significantly.