Debt Payoff CalculatorSnowball vs Avalanche Strategy

Compare debt payoff strategies and find the fastest path to financial freedom. See exactly when you'll be debt-free with our comprehensive analysis and timeline.

Strategy Comparison

Compare Snowball vs Avalanche methods with detailed analysis

Payoff Timeline

See exactly when each debt will be paid off

Interest Savings

Calculate total interest savings with different strategies

Payment Settings

Additional amount beyond minimum payments

Debt Summary
$23,000
Total Debt
$440
Min Payments
$740
Total Payment
11.4%
Avg Interest
Your Debts

Understanding Debt Payoff Strategies

Debt Snowball Method

How it works:

Pay minimum on all debts, then put extra money toward the smallest balance first.

Advantages:

  • • Quick psychological wins
  • • Builds momentum and motivation
  • • Simplifies your debt list faster
  • • Good for those who need encouragement

Best for:

  • • People who struggle with motivation
  • • Those with similar interest rates
  • • Individuals who need quick wins

Debt Avalanche Method

How it works:

Pay minimum on all debts, then put extra money toward the highest interest rate first.

Advantages:

  • • Saves the most money in interest
  • • Mathematically optimal approach
  • • Fastest path to debt freedom
  • • More efficient use of money

Best for:

  • • Disciplined individuals
  • • Those focused on saving money
  • • People with varying interest rates

Common Debt Types & Interest Rates

Credit Cards

15-25%

Highest priority for payoff due to high interest rates

Personal Loans

6-15%

Fixed rates, predictable payments

Student Loans

3-7%

Often tax-deductible interest

Auto Loans

3-8%

Secured by vehicle value

Mortgages

3-6%

Lowest priority, tax benefits

Medical Debt

0-10%

Often negotiable, payment plans available

Your Debt Payoff Action Plan

1

List All Your Debts

Gather all debt information: balances, interest rates, and minimum payments. Use our calculator above to input your debts.

2

Choose Your Strategy

Compare Snowball vs Avalanche methods. Choose Avalanche for maximum savings or Snowball for motivation.

3

Find Extra Money

Cut expenses, increase income, or use windfalls to accelerate debt payoff. Every extra dollar counts.

4

Automate Payments

Set up automatic payments to ensure consistency and avoid late fees. Stay disciplined with your plan.

5

Track Progress

Monitor your progress monthly and celebrate milestones. Adjust your strategy if circumstances change.

Related Financial Tools

Ready to Become Debt-Free?

Use our calculator above to create your personalized debt payoff plan. Choose the strategy that works best for your situation and start your journey to financial freedom today.