Find out when you'll be debt-free and see how extra payments accelerate your payoff.
Each month, interest accrues on your remaining balance. Your payment covers interest first, then principal. We simulate this month-by-month until balance hits zero: New Balance = (Old Balance × (1 + APR/12)) - Payment
On $15,000 at 18% APR with $300 minimum: 7+ years to payoff, $10,000+ in interest. Add just $200 extra: 2.5 years, $3,500 interest. Extra payments are incredibly powerful.
Pay debt if APR > expected investment return. Credit card at 20%? Pay it off. Student loan at 4%? Invest first (especially if employer 401k match). Always get the full employer match—that's 100% return.
Audit subscriptions (average American wastes $200/mo), sell unused items, take a side gig (even $500/mo slashes years off debt), use windfalls (tax refunds, bonuses) for lump payments.
Temporarily, maybe—closing accounts lowers average age. Long-term, no: lower credit utilization and fewer payments to juggle helps. Pay debt anyway; the freedom is worth more than a few points.
Call your creditors—many offer hardship programs (lower rates, deferred payments). Look into nonprofit credit counseling (NFCC.org). Bankruptcy is a last resort but exists for a reason.