💳 Debt Payoff Calculator

Is your debt load manageable?

Credit cards, student loans, car payments — find out if your total debt is under control or quietly spiraling.

→The average American carries $104,215 in total debt including mortgages, auto loans and credit cards.

→If your DTI exceeds 43%, most lenders will deny new credit — and financial advisors consider it a crisis threshold.

→Paying just $100 extra per month on a $20,000 debt at 18% APR saves over $8,000 in interest.

$104k

Avg total debt per American

43%

DTI threshold lenders flag as risky

18%

Avg credit card APR in the U.S.

24mo

Avg time to pay off $20k debt

Avalanche vs. Snowball method

The avalanche method pays off highest-interest debt first — it saves the most money mathematically. The snowball method pays off smallest balances first — it builds momentum psychologically.

Both work. The best method is the one you actually stick to. Use this calculator to find the monthly payment that keeps you on track without breaking your budget.

When to consider consolidation

Debt consolidation makes sense when: you have multiple high-interest debts (especially credit cards above 20% APR), you can qualify for a consolidation loan at a lower rate, and your DTI is below 43%.

It does not solve overspending — it restructures existing debt. If you consolidate and continue using the cards, you end up with more debt, not less. Fix the behavior first, then consolidate.

Common questions

How long will it take to pay off $20,000 in credit card debt?

At 18% APR paying only the minimum (~2% of balance), it takes over 30 years and costs more than $40,000 in total. Paying $600/month clears the debt in about 42 months at a total cost of ~$25,000. Paying $1,000/month clears it in about 24 months. Use the calculator above to find your optimal payment.

What DTI is considered too high?

Under 35% is healthy. 35–43% is manageable but leaves little room for emergencies. Over 43% means most lenders will deny new credit and financial advisors consider it a crisis level requiring immediate action — either increasing income, cutting expenses, or consolidating at a lower rate.

Should I pay off debt or save first?

Build a $1,000 emergency fund first — always. Then aggressively pay down any debt above 7% APR before investing. Debt at 18% APR is a guaranteed 18% return when paid off — no investment consistently beats that. Once high-interest debt is clear, shift to building a 3–6 month emergency fund and then investing.