Debt payoff basics

Paying off debt is not just about sending money each month. The order you tackle balances, the strategy you choose, and any amount above the minimum all change how long you stay in debt and how much interest you pay.

Snowball vs. avalanche

The snowball method pays off the smallest balance first for quick wins and momentum. The avalanche method targets the highest interest rate first to minimize total interest. Both work best when you keep paying at least the minimum on every debt and add any extra to one target at a time.

Why minimums are expensive

Minimum payments are designed to keep an account current, not to get you out of debt quickly. Paying only minimums can stretch payoff over many years and pile on interest — especially on high-rate credit cards.

How extra payments help

Even a modest extra amount each month reduces interest and shortens payoff time because more of each payment goes to principal. Compare your minimum-only baseline to a plan with extra payments to see the difference in months and total interest.