You'll spend the next 20 years making payments. Over those 20 years you'll pay $44,799 in interest. That could have been a down payment on a house or multiple nice vacations. If you could stop making payments today and invest the same $1,132/month into the S&P 500, you could have $778,024 twenty years from now. Three-quarters of $1 million, down the drain in payments.
02 — How We Attack It
Avalanche method: highest interest rate first.
CREDIT CARDS → CAR #1 → CAR #2 → STUDENT LOAN
$2,000/mo
Your payoff budget
$868/mo above minimums
$39,220
Interest saved
vs. making minimums only
PAYOFF ORDERPAID OFF IN
1
Credit cards
Avalanche target — highest rate (27.99%)
7 Months
2
Car Loan #1
Card payments + extra $868/month roll into this
13 Months
3
Car loan #2
Paying down by $1,678/month
20 Months
4
Student Loan
Avalanche at maximum momentum
30 Months
03 — Your Timeline To Debt-Free
Balance remaining at year-end · current minimums vs. avalanche @ $2,000/month
Current path (minimums only)
With a Square One plan
2025
2026
$0 ✓
2027
2028
2029
$24k
2030
YEAR
DEBT-FREE IN 2 YEARS 6 MONTHS
Payments - Destroyed. $61k of debt gone in less than 3 years. Instead of making payments for the next two decades, you get to build. $24k/year just opened up, you don't owe anyone money, and the sky is the limit.
Illustrative sample. Your plan is built from your real numbers and goals.