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Debt Payoff Calculator

Compare Snowball vs Avalanche strategies to become debt-free faster

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The Debt Snowball Method

Popularized by Dave Ramsey

How It Works
List your debts from smallest to largest balance (ignoring interest rates). Make minimum payments on all debts except the smallest one. Put all extra money toward the smallest debt until it's paid off. Then "snowball" that payment to the next smallest debt.
Pros
Quick wins provide psychological momentum and motivation. Seeing debts disappear faster can help you stay committed. Great for people who need emotional victories to stay on track.
Cons
You may pay more in total interest over time. Mathematically less efficient than the avalanche method. Higher-interest debts continue accruing interest while you focus on smaller balances.

The Debt Avalanche Method

The mathematically optimal approach

How It Works
List your debts from highest to lowest interest rate. Make minimum payments on all debts except the one with the highest interest. Put all extra money toward the highest-interest debt until it's paid off. Then move to the next highest interest rate debt.
Pros
Minimizes total interest paid over time. Mathematically the most efficient method. Can save hundreds or thousands in interest charges. Gets you debt-free in the least amount of time.
Cons
May take longer to see your first debt paid off. Requires more discipline without quick wins. Can feel discouraging if your highest-interest debt has a large balance.

Tips for Success

Build an Emergency Fund First
Before aggressively paying off debt, save $1,000 for emergencies. This prevents you from going deeper into debt when unexpected expenses arise.
Stop Adding New Debt
Cut up credit cards or freeze them in ice. You can't fill a bucket with a hole in it. Focus on stopping the bleeding first.
Find Extra Money
Sell unused items, pick up a side gig, or cut expenses. Every extra dollar toward debt accelerates your payoff dramatically.
Celebrate Milestones
Mark each debt payoff with a small celebration. The psychological boost helps maintain motivation throughout your debt-free journey.