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what is the best way to pay off the dept i owe?
I want to pay off my debt. I really want to know how the debt repayment calculator works. if I put higher interest, does that make my credit score go higher when im finished paying it off? if so, whats a good interest rate?

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A good interest rate

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A good interest rate is a low one from the perspective of paying off loans/credit cards. When you use the debt calculater and change the interest rate to you should see a change in the pie chart which shows the amount of principle versus interest that you are paying. This debt calculator should let you play with how different monthly payments or different time goals would affect each other. For example you fix your balanced owed and interest rate, then see how much you'd pay per month if your goal was to be debt free in 60 months versus 12 months. Or you could see how long it would take to pay off if you made monthly payments of $200 versus $250. 

If you are looking for a good way to pay off multiple lines of debt though, the "snowball" method is one which many financial planning books reccomend. Consistently pay at least the minimum on each line (more if you can afford it). When the lowest amount line of debt is paid off, add the payment you were making on that line to the payment on next lowest amount line. Once that is paid off, add that payment amount to the payment for the third lowest and so on.

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I have been using the snowball method for a year.  I now have five accounts down to zero and two others with ony 2-3 payments left.  I do still have a couple with huge (to me) balances, but will still be able to pay off all in another 12 months.  I did mine slightly different, however.  I make my minimum payment PLUS $15.00 on all cards, except the snowball account.  That way, I am also reducing the balance faster and paying less interest on all accounts.  I realize not everyone can do this, but it works well for me.   One major point I have to make here.  PUT ALL CARDS AWAY AND DO NOT USE THEM.  To avoid temptation, I actually put all my cards in a safe deposit box for the first six months, until I knew I would not be tempted. 

Before I stated this, I was paying and extra $30-40 on each account, and getting nowhere.  My spreadsheat said I had 42 months to pay off everything.  With my new system, I will have everything paid in a total of 25 months.  Good luck to you,

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Pay off the lowest line of credit you owe and then use what WAS that debts monthly payment and apply it to the next line of credit along with the payment for that line.

For example, I had a card with a $327 balance and another with a $767 balance. I paid off the $327 card then used the payment of $30 per month that I WAS paying on that one and added that $25 to the payment for the $767 card. I was then making $55 payments on that card. 

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Interest Rate

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Interest rates don't affect your credit score.  They only afftect how much you spend in paying back your debt.  A higher interest rate means you pay more in borrowing costs, so pay those with the highest APR down ASAP.  In general, the lower the interest rate for payments, the better.

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Snowball method

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