How to pay off a loan faster — and see the payoff date

Every loan has an end date built into it. The interesting question is what happens to the rest of your money before and after that date — and whether you can pull the date forward.

The two ordering strategies

If you have several debts, snowball means throwing spare money at the smallest balance first, regardless of rate — you clear whole debts quickly and the momentum keeps you going. Avalanche means attacking the highest interest rate first — mathematically cheaper, but slower to show a win.

Avalanche saves more money. Snowball is finished by more people. If you've abandoned debt plans before, the psychology is worth the few euros of extra interest.

What an extra payment really buys you

Overpaying doesn't lower next month's required payment — it shortens the loan. Every extra unit goes straight at the principal, so it removes interest you'd have paid on that amount for the entire remaining term. The earlier in the loan you do it, the more it's worth.

Before overpaying, check for early-repayment fees and make sure you have a cash buffer. A loan paid off aggressively with no emergency fund just means the next surprise goes on a credit card at a worse rate.

The payoff bump

The month a loan clears, that repayment amount simply stops leaving your account. Your monthly net jumps by the full repayment, and it stays that way. If two loans end within a year of each other, your savings rate can change dramatically over a short window.

Budget Runway marks each loan's final month on the projection chart, so you can see the balance line steepen at exactly the point a loan drops off — and decide where that freed-up money should go next.