Compare debt avalanche vs snowball methods, see how much interest you'll save, and figure out the best way to pay off your debt.
Total amount you can pay toward debt each month
Enter all your debts to compare payoff strategies
A step-by-step guide to getting the most out of your debt payoff strategy
Start by collecting all your debt information. You'll need the current balance, interest rate, and minimum payment for each debt. This includes credit cards, personal loans, student loans, car loans, and any other outstanding balances.
Calculate how much you can realistically pay toward debt each month. This should be above the minimum payments required. The more you can pay, the faster you'll become debt-free and the less interest you'll pay overall.
💡 Pro Tip
Aim to pay at least 20% more than your minimum payments to make meaningful progress on your debt.
Our calculator will show you three different payoff strategies. Each has its advantages, and the best choice depends on your financial situation and psychological preferences.
Look at the total interest you'll pay, how long it will take to become debt-free, and the potential savings. The calculator shows you exactly when each debt will be paid off and how much interest you'll save compared to making minimum payments.
📊 Key Metrics
Focus on total interest paid and months to freedom - these are your most important numbers.
Each method has its own advantages. Here's what you need to know to choose the right strategy for you.
Pay off debts with the highest interest rates first, regardless of balance. This method saves you the most money in interest over time.
BEST FOR
People who want to save the most money and don't need quick wins to stay motivated.
Pay off debts with the smallest balances first, regardless of interest rate. This method provides quick wins and psychological momentum.
BEST FOR
People who need motivation and quick wins to stay committed to debt payoff.
Pay only the minimum required amount on each debt. This is your baseline comparison to see how much you can save with other strategies.
AVOID IF POSSIBLE
Only use if you cannot afford to pay more than minimums.
Expert strategies to accelerate your debt payoff and stay motivated
Build an emergency fund first
Having 1-3 months of expenses saved prevents new debt when emergencies arise.
Stop using credit cards
Cut up or freeze your cards to prevent adding new debt while paying off old debt.
Negotiate lower interest rates
Call your creditors and ask for lower rates - many will work with you.
Track your progress monthly
Update your debt balances and celebrate each debt that gets paid off.
Use windfalls wisely
Apply tax refunds, bonuses, and unexpected money directly to debt.
Find accountability partners
Share your goals with friends or family who can encourage you along the way.
Combine multiple high-interest debts into one lower-rate loan to simplify payments.
Move high-interest credit card debt to cards with 0% introductory rates.
Use extra income from part-time work or freelancing to accelerate debt payoff.
Common questions about debt payoff strategies and our calculator
The debt avalanche method (highest interest first) saves the most money mathematically. However, the debt snowball method (smallest balance first) provides psychological wins that help many people stay motivated. Choose based on what will keep you committed to the process.
Build a small emergency fund (1-3 months of expenses) first, then focus on debt payoff. This prevents you from going deeper into debt when unexpected expenses arise. Once you have basic emergency savings, prioritize debt payoff, especially high-interest debt.
Focus on increasing your income or reducing expenses first. Consider a second job, selling unused items, or cutting non-essential expenses. Even small increases in your monthly payment can significantly reduce your total interest costs.
Our calculator provides accurate estimates based on your inputs. However, actual results may vary due to changes in interest rates, additional charges, or payment timing. Use this as a planning tool and verify with your creditors.
Consider consolidation if you have multiple high-interest debts and can qualify for a lower-rate loan. This can simplify payments and reduce interest costs, but be careful not to extend your repayment timeline significantly.