Guides

Short, plain answers to the questions that come up when you're paying off debt and keeping up with bills. Or try your own numbers in the debt snowball calculator.

• Debt snowball vs. avalanche: which should you use?Both pay every minimum and put extra money on one debt at a time. See a worked example with real numbers, what each costs, and how to pick.
• How to catch up on past-due billsBehind on a bill? A calm, step-by-step way to see what's past due, protect the essentials first, talk to the company, and catch up at a pace you can afford.
• Which paycheck should pay which bill?A simple way to match each bill to the paycheck that covers it, spot a short paycheck before it happens, and stop running out of money before payday.
• How to know if you can afford somethingBefore a purchase, check it against your real income, bills and debt payments. A simple way to tell a yes from a maybe, and how to save up for it instead.
• How big should an emergency fund be?Common rules of thumb for an emergency fund: a starter cushion first, then a few months of essential expenses. How to work out your number and build it.
• How long does it take to pay off $20,000 in credit card debt?At 22% APR, paying $400 a month takes over 11 years and about $34,700 in interest. $800 a month: under 3 years. See the full table.
• How to pay off $5,000 in 6 monthsAbout $834 a month with no interest, or $888 at 22% APR. What it takes, where the money can come from, and a calculator for your own debts.
• How to pay off $30,000 in debt in 2 yearsAbout $1,250 a month at 0%, $1,344 at 7% or $1,557 at 22%. See what it costs, how to split it across several debts, and try your own numbers.