Question 1

How is the payoff time calculated?

Accepted Answer

From your balance, interest rate (APR) and fixed monthly payment. Each month interest is added, your payment is subtracted, and the calculator counts how many months it takes to reach zero — plus the total interest you'll pay.

Question 2

Snowball or avalanche — which is faster?

Accepted Answer

The avalanche method (pay the highest-APR debt first) clears debt fastest and costs the least interest. The snowball method (smallest balance first) is slower but gives quick wins that help many people stay motivated.

Question 3

Why does a small extra payment save so much interest?

Accepted Answer

Every extra dollar goes straight against the principal, so you stop paying interest on it for the whole remaining life of the debt. On high-APR balances, even a modest increase can cut months and hundreds in interest.

Question 4

What interest rate should I enter?

Accepted Answer

Use the APR shown on your card or loan statement. If you're combining several debts, either run them separately or use a rough average weighted by balance.

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