Extra payments
How extra payments reduce debt
Extra payments can reduce payoff time and interest, but the impact depends on the amount, consistency, and target debt.
What to know
The rollover effect
When one debt is paid off, its payment can roll into the next target debt, increasing progress without increasing the total monthly budget.
The targeting effect
Extra money aimed at a high-interest or high-impact debt can change total interest and payoff time more than spreading it evenly.
FAQ
Should I split extra payments across debts?
Usually a strategy focuses extra money on one target while keeping minimums current elsewhere, but the best approach depends on your numbers.
What if I cannot pay extra every month?
Use a conservative estimate and recalculate when the monthly amount changes.
Related reading
Make it personal
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