Debt Payoff Strategies
Proven methods to pay off your loans faster
Extra Payment Strategies
Minimum Only
Pay only the required amount
Round Up
Round up payment to nearest $50
Extra Monthly
Add fixed amount each month
Bi-Weekly
Pay half every 2 weeks (13 payments/yr)
One-Time Lump Sum
Make a single extra payment
Debt Avalanche
Pay minimum on all debts, put extra toward highest interest rate first.
- Saves most money on interest
- Mathematically optimal
Debt Snowball
Pay minimum on all debts, put extra toward smallest balance first.
- Quick wins for motivation
- Psychologically rewarding
2026 Average Loan Rates
| Loan Type | Avg Rate | Avg Term |
|---|---|---|
| Personal Loan | 12.5% | 60 mo |
| Auto Loan | 7% | 60 mo |
| Student Loan | 6.5% | 120 mo |
| Mortgage | 7% | 360 mo |
| Credit Card | 24% | Revolving |
Quick Tips to Pay Off Faster
Round up payments to nearest $50
Use tax refunds as lump sum payments
Set up automatic extra payments
Pay bi-weekly instead of monthly
Refinance to lower rate if possible
Apply raises/bonuses to debt
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Based on Federal Reserve and Consumer Financial Protection Bureau data 2026