Debt Repayment Calculator
Two popular strategies dominate debt payoff: the snowball and the avalanche. Both work — the best one is the one you will actually stick to. Here is the difference.
The avalanche method
Pay minimums on everything, then throw all extra money at your highest interest rate debt first. Mathematically optimal — it minimises total interest paid. Best if you are motivated by saving money.
The snowball method
Pay minimums on everything, then attack your smallest balance first. You clear debts quickly, which builds momentum and motivation. Best if you need psychological wins to stay on track.
Try it with your own numbers:
Compare your payoff options →Which saves more?
The avalanche always saves at least as much interest as the snowball. But studies show many people stick with the snowball better because of the early wins — and a method you follow beats an optimal one you abandon.
The honest recommendation
If the interest-rate gaps between your debts are large, use the avalanche — the savings are worth it. If your debts are similar in rate, or you have struggled to stay motivated before, use the snowball. Run both through the debt repayment calculator to see the difference for your situation.