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Open the Credit Card Payoff Calculator →If you have multiple debts — credit cards, personal loans, a car loan — the order you pay them off has a massive impact on total interest paid and time to debt freedom. Two methods dominate personal finance: the avalanche and the snowball.
Rule: Pay minimums on all debts. Direct every extra dollar to the debt with the highest interest rate. When it's gone, roll that payment to the next highest rate.
Why it works: Mathematically optimal. You eliminate the most expensive debt first, reducing total interest paid.
Rule: Pay minimums on all debts. Direct every extra dollar to the debt with the smallest balance. When it's gone, roll that payment to the next smallest balance.
Why it works: Psychologically powerful. Quick wins keep you motivated and build momentum.
Assume $500/month available for debt repayment after minimums:
| Debt | Balance | Rate | Min Payment |
|---|---|---|---|
| Credit Card A | $4,000 | 22% | $80 |
| Personal Loan | $8,000 | 12% | $150 |
| Car Loan | $12,000 | 7% | $220 |
| Method | Total Interest Paid | Months to Debt-Free |
|---|---|---|
| Debt Avalanche | ~$3,200 | ~34 months |
| Debt Snowball | ~$3,900 | ~36 months |
| Choose Avalanche if... | Choose Snowball if... |
|---|---|
| You're motivated by numbers and data | You need early wins to stay motivated |
| Your highest-rate debt is also small | You've failed at debt payoff before |
| You're disciplined and consistent | You have many small debts cluttering your finances |
| Minimising total interest is the priority | Simplifying your debt picture matters more |
Many people start with snowball to eliminate 1–2 small debts quickly (building momentum), then switch to avalanche for the remaining larger debts. This is psychologically valid — the mathematical cost of the initial snowball phase is usually small.
Stop adding new debt while paying off old debt. Carrying a balance on a credit card while trying to pay off other debt is like bailing out a boat while leaving the tap running.
Enter your loan details and extra payment amount. Our calculator shows payoff date, total interest, and interest saved.
Open Loan Payoff Calculator →Whether you choose avalanche or snowball, adding even $100–$200/month extra to your highest-priority debt dramatically shortens the payoff timeline. A $10,000 loan at 12% takes 36 months to pay off at $350/month — add $100/month and it falls to 28 months, saving over $800 in interest.