People spend hours debating snowball vs avalanche. But the single variable that moves your payoff date the most? How much extra you pay each month.
What $100/mo extra actually does
On $20,000 in credit card debt at 20% APR, paying only minimums takes 15+ years and costs $25,000+ in interest. Add $100/mo extra and you're done in 5 years, saving $18,000 in interest. That's the power of extra payments.
Finding your extra payment number
Start with your budget. Track one month of actual spending — not what you think you spend, what you actually spend. Most people find $100–300/mo in categories they can reduce without serious lifestyle impact:
- Subscriptions: audit every recurring charge. The average American pays for 4+ subscriptions they forgot about.
- Food: restaurants and food delivery are usually the biggest discretionary category. Cutting 3 meals out per week saves $150–200/mo for most households.
- Entertainment: streaming services, sports packages, gaming subscriptions — most households have $60–100/mo here.
The "lump sum" strategy
Beyond monthly extra payments, lump sums are the single biggest accelerator. Tax refunds, bonuses, side income, selling items — every dollar applied directly to principal saves years of interest compounding.
The average US tax refund is $3,000. Applied directly to debt at 22% APR, that saves roughly $660/yr in interest — every year until that debt is gone.
How to calculate your optimal extra payment
Use the calculator on the homepage. Try these three numbers and watch what happens to your payoff date:
- $0 extra (minimums only)
- $100/mo extra
- $200/mo extra
For most people, going from $0 to $100 extra moves the payoff date by 2–4 years. Going from $100 to $200 extra moves it another 1–2 years. The first hundred dollars of extra payment has the biggest impact.
The minimum extra payment rule
A good rule of thumb: try to pay at least 150% of your total minimum payments. If your minimums are $400/mo, target $600/mo in total debt payments. This gets you out of debt in roughly 3–5 years on most typical debt loads, compared to 10–20 years at minimums only.
When you can't afford extra payments
If cash is truly too tight for extra payments right now, focus on two things: stopping new debt accumulation and finding one small income source. Even $50/mo extra makes a measurable difference. Start there and increase as your situation improves.