Which debt should you pay off first?
List what you owe and how much extra you can pay each month. We show the payoff order that saves the most money.
What do you owe?
Add each credit card and loan on its own. You will find the balance, rate and payment on your latest statement.
How much room do you have?
This is money beyond your required payments that you could put toward debt. Zero is fine. Even then, rolling a paid-off debt's payment into the next one helps.
A tax refund, bonus or savings you want to apply right away.
Your payoff plan
Before you send extra money to a debt
Keep a cushion
Many people keep a small emergency fund first, so one surprise bill does not go back on a credit card.
Check for payoff fees
Some car and personal loans charge a fee for early payoff. Ask your lender before you send extra.
Promotional rates
A 0% card offer or a rate that jumps later changes the math. Enter the rate you pay today and update it when it changes.
Student loan protections
Federal student loans can offer income-based plans and other protections. Consider those before paying them off early.
Mortgages
Mortgage rates are often the lowest on your list, so extra money usually does more good elsewhere. Your own goals may differ. Enter principal and interest only.
Tax effects
Mortgage and student loan interest may be deductible in some cases. A tax professional can tell you how that applies to you.
Guides on paying off debt
Debt snowball vs. avalanche: which one is better?
Compare the debt snowball and debt avalanche methods with a worked example showing months to payoff and total interest.
The real cost of paying only the minimum
See how long it takes to pay off a $5,000 credit card at different monthly payments, and how much interest each choice costs.
How credit card interest really works
Learn how credit card interest is calculated, what a grace period is, and why carrying a balance costs more than the stated APR suggests.
What APR means and how to use it
APR is the yearly cost of borrowing. Learn how it differs from the interest rate and why it matters when comparing loans and credit cards.
Should you pay off your car loan early?
Find out how much interest extra car loan payments can save, and what to check with your lender before you send more than the required payment.
Pay off student loans early or invest instead?
A plain-language framework for deciding between extra student loan payments and investing, with an example of what extra payments save.
Should you pay off your mortgage early?
See how much interest extra mortgage payments can save on a 30-year loan, and the trade-offs to weigh before you pay down your home loan.
How to pay off debt faster
Eight practical steps for paying off debt faster, including how rolling freed-up payments into the next debt cuts months and interest.