PayoffHarbor · Debt planning, in plain English
These definitions explain the terms used in PayoffHarbor’s debt and consolidation estimates. CFPB resources are linked for general background; they do not endorse PayoffHarbor or its estimates.
The yearly rate you enter for a debt or offer. In the payoff planner, the entered annual APR is divided by 12 to estimate monthly interest on the month’s starting balance. A lender may calculate interest daily or use other account terms, so the estimate may differ from a statement.
The monthly floor you enter for a debt. PayoffHarbor includes all entered minimums inside your total monthly debt-payment budget, pays those minimums first in the model, and directs any remaining budget to the selected payoff order.
A temporary annual rate and number of months you enter for a debt. The planner models that rate for the entered period, then applies the regular APR to any balance that remains after the period ends. Actual offers can have terms and conditions the estimate does not model.
The part of an entered consolidation offer amount modeled as available to pay listed debts after an origination fee marked “deducted from proceeds” is withheld. Fees marked as financed or paid separately affect the model differently, so check the fee treatment and other entered fees.
The estimated total cost across the modeled payment schedule using the entered balances or offer terms, interest, and included fees. It is a projection from those inputs, not a lender quote or a guarantee of what you will pay.
The estimated time for the modeled balances to reach zero under the entered APRs, minimum payments, fees, and total monthly budget. For an offer comparison, the entered loan term is also part of the calculation. Actual timing can change with lender methods, payment dates, fees, or changing terms.
Related CFPB sources
A payoff order that puts extra budget toward the debt with the highest applicable rate while minimum payments continue on the other debts. When one debt is paid off, its available payment amount can roll to the next debt in the order.
Related CFPB sources
A payoff order that puts extra budget toward the debt with the smallest balance while minimum payments continue on the other debts. When one debt is paid off, its available payment amount can roll to the next debt in the order.
Related CFPB sources