More than one debt · Side-by-side plans
Which debt should I pay off first?
Short answer
Pay every minimum, then put extra money on the highest-rate debt first, usually the credit card. Here that saves $3,958 compared with paying the lowest rate first.
With $1,800 a month the highest-rate-first plan is debt-free in February 2031.
This example uses typical 2026 balances and rates: an average card balance, an average personal loan, a used-car loan and a student loan. Together they're $76,156, with $1,464 a month in minimums and $1,800 a month to work with.
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Credit card | $6,610 | 22.36% | $189 |
| Personal loan | $11,694 | 12.55% | $392 |
| Used-car loan | $27,852 | 11.19% | $542 |
| Student loan | $30,000 | 6.5% | $341 |
| Total | $76,156 | $1,464 |
Bars drawn to scale. Minimums are held fixed, there are no new charges, and the first payment is next month.
The order each plan pays them off
Highest rate first:
- Credit card paid off in January 2028
- Personal loan paid off in October 2028
- Used-car loan paid off in January 2030
- Student loan paid off in February 2031
Lowest rate first:
- Personal loan paid off in October 2029
- Student loan paid off in August 2030
- Credit card paid off in April 2031
- Used-car loan paid off in April 2031
Try one of your own debts
Why rate beats balance
The card charges 22.36%, about twice the personal-loan and car-loan rates and more than three times the student loan's. Every dollar sent there stops the most interest.
The highest-rate-first plan clears the card in January 2028. Then that payment rolls onto the next debt.
Before you pick an order
Keep every payment current. Missed payments bring fees and credit damage that outweigh any ordering gain, and on a car loan they can lead to repossession.
Have a small cushion. A few hundred dollars set aside stops a surprise bill from going back on the card.
Have more than one debt?
Add your cards, loans and mortgage to see one debt-free date for all of it, and which to pay first.
Common questions
Should I pay off the smallest debt first instead?
That's the snowball method. It gives faster early wins but usually costs more interest. See snowball vs avalanche for the trade-off with real numbers.
What about my mortgage?
A mortgage usually has the lowest rate of anything you owe, so in a highest-rate-first plan it comes last. Whether to pay it down early depends on your other goals, and is worth looking at with a guide.
How this payoff estimate is calculated
The strategy plans use a total monthly budget of $1,800 across the debts listed above. Minimum payments stay fixed. Extra money and payments freed by a cleared debt are applied to the remaining debts in the selected order. The minimums-only comparison does not roll freed payments forward.
Each month, interest is calculated as the opening balance × APR ÷ 100 ÷ 12, then the payment is subtracted. This repeats until the balance is paid off. Total interest is the sum of those monthly charges; displayed dollar amounts are rounded.
Dates assume the first payment is in November 2026. Dates move forward with the calendar; this does not change the number of payments for the same inputs. There are no new charges, fees or rate changes in these examples. Rates are illustrative inputs, not loan offers or a quote for your account.
Actual statements can differ because of payment timing and daily interest. The CFPB explains how credit card companies calculate interest. See our debt payoff glossary for definitions.
Written and reviewed by Todd K. Ballenger. Read our editorial policy.
Educational estimate only, not financial advice. Interest here is charged monthly at APR ÷ 12; card issuers use your average daily balance, and real fees, rate changes and new charges will change your numbers. Disclaimer.