Question 1

What is the best way to pay off debt fast?

Accepted Answer

Attack your highest-interest debt first (the avalanche method) while paying at least the minimum everywhere else — it's the mathematically fastest and cheapest route out of debt for most people. If you have several small balances and need motivation more than optimal math, the snowball method (smallest balance first) can work better in practice because early wins build momentum. Either way, the single biggest lever is simply paying more than the minimum wherever you can.

Question 2

How should mixing a mortgage, car loan, and credit cards change my strategy?

Accepted Answer

Rate, not debt type, should drive the order — a 22% credit card is always a higher priority than a 6% mortgage regardless of which one is larger or scarier. That said, a few practical exceptions matter: keep making mortgage and auto payments on schedule since missing them risks losing the asset, and treat medical debt separately since it's often negotiable or interest-free even though it's unsecured. Enter every debt type into the table above and let the avalanche ordering handle the rate-based prioritization for you automatically.

Question 3

How much does an extra payment save?

Accepted Answer

It depends heavily on which debt receives it — extra payments toward your highest-APR balance save far more than the same dollar amount spread evenly, because that balance is accruing interest the fastest. Use the "What if I pay an extra $X/month" field above to see the exact months and dollars saved for your specific debts and chosen strategy.

Question 4

What is debt consolidation and should I do it?

Accepted Answer

Consolidation combines several debts into one new loan, ideally at a lower blended interest rate, simplifying multiple payments into one. It's worth considering when the new rate is meaningfully below your current weighted-average rate and you can avoid running the paid-off cards back up — the math and the behavior both have to work for it to actually save money. Run your numbers through our dedicated debt consolidation calculator to see if it clears that bar.

Type	Balance ($)	Min Pmt ($)	APR %

Debt	Balance	APR	Min Pmt	Interest	Paid Off
🏠 Mortgage	$180,000	6.5%	$950	$110,016	Paid off
🚗 Auto Loan	$12,000	7.2%	$250	$1,176	Paid off
🎓 Student Loan	$28,000	5.0%	$285	$8,091	Paid off
💳 Credit Card	$4,800	22.9%	$96	$537	Paid off
TOTAL	$224,800	—	$1,581	$119,820	Feb 2041

Strategy	Order	Best For	Interest Saved
⛰️ Avalanche	Highest APR first	People motivated by saving money	Maximum
❄️ Snowball	Smallest balance first	People who need early wins for motivation	Near-maximum
⚠️ Min Only	No focused extra	Emergency cash-flow situations only	None — worst outcome

Debt Type	Typical APR	Priority	Recommendation
💳 Credit Cards	18-30%	🔴 Highest	Pay aggressively — avalanche these first
🩺 Medical Debt	0-18%	🔴 High	Negotiate; many hospitals offer 0% plans
🤝 Personal Loans	8-25%	🟠 High-Moderate	Pay above minimum; compare to investments
🚗 Auto Loans	4-12%	🟡 Moderate	Pay on schedule; extra payment helps
🎓 Student Loans	4-8%	🟡 Moderate	Compare to investment returns before extra pay
🏠 Mortgage	3-8%	🟢 Low	Investing may outperform extra payments long-term

Debt Payoff Calculator — All Debts, Your Strategy

Debt Payoff Calculator

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