Debt – Money that is owed or due. Balance Owed – The remaining amount of your debt that you need to pay. Annual Interest Rate (APR) – Also known as the annual percentage rate, it is the interest rate applied to your credit card purchases that were not paid in full each month. Payoff Date – The date you set for completely paying off your debts. Monthly Payment Needed – The amount of money you need to allocate to pay off your debts based on your goal date. Interest – The amount paid for borrowing money. Principal – The original amount of money borrowed, not including interest. Be aware that when interest compounds, interest is then added to that principal increasing the balance owed.