Pago de deudas, explicado

A balance transfer moves an existing credit card balance from a high-APR card to a new card that offers a 0% intro APR for a defined period (typically 12-21 months). Most transfers carry a one-time transfer fee of 3-5% of the transferred amount.

The debt avalanche is a payoff strategy that orders debts from highest APR to lowest. You make minimum payments on every debt and put any extra money toward the highest-APR balance until it is paid off, then move to the next-highest APR, and so on.

Debt consolidation combines multiple existing debts into a single new debt, usually a personal loan from a bank, credit union, or online lender. The new loan pays off the existing debts on day one; you then make one monthly payment to the new lender at (ideally) a lower APR.

The debt snowball is a payoff strategy that orders debts from smallest balance to largest. You make minimum payments on every debt and put any extra money toward the smallest balance until it is paid off, then roll that payment into the next smallest debt, and so on.

Debt-to-income ratio is the percentage of your gross monthly income that goes to monthly debt obligations. Lenders calculate it as total monthly debt payments divided by gross monthly income. The result is a percentage that proxies for whether you can absorb a new monthly payment without overextending.

An emergency fund is a savings buffer dedicated to unexpected expenses or income disruptions. The trade-off with debt payoff is that every dollar in savings is a dollar not reducing high-APR debt — but a dollar in debt payoff is not available when an emergency hits.

Credit card interest is calculated using a daily periodic rate (DPR) applied to your average daily balance. The DPR is the APR divided by 365. Each day's interest is added to the balance, which then accrues its own interest the next day — that is the compounding effect.

The hybrid debt payoff strategy attacks debts above a threshold APR (commonly 20%) using avalanche ordering — highest rate first. Once all above-threshold debts are paid off, the remaining debts are ordered by balance smallest first using the snowball method.

The minimum payment trap is the well-documented effect where paying only the minimum payment on a credit card extends the payoff horizon to 20-30 years on a typical balance and accrues total interest that often exceeds the principal balance.

Couple-level debt payoff is a planning framework where two partners maintain a shared view of household debt obligations and contribute jointly to the payoff schedule, regardless of which partner originally incurred each debt.

Variable-income debt payoff is a planning framework for households whose monthly take-home pay swings by 20% or more month-to-month. The approach replaces fixed monthly payments with paycheck-cadence scheduling, a baseline floor that covers minimums in any lean month, and percentage-based extra allocation rather than fixed dollar extras.

Snowball orders debt payoff smallest balance first. Avalanche orders payoff highest APR first. Both use the same monthly payment total and both retire every debt — the choice is which order delivers the right balance of motivation and math for your situation.