What is the Avalanche method?

The Debt Avalanche method pays minimums on all debts and directs extra money to the debt with the highest interest rate first. It is mathematically optimal and saves the most total interest.

What is the Snowball method?

The Debt Snowball method pays minimums on all debts and directs extra money to the smallest balance first. It builds psychological momentum through quick wins, making it easier to stay motivated.

How much does an extra 100 dollars per month save?

On a $10,000 credit card balance at 20% APR with 2% minimum payments, adding $100 per month saves approximately $3,500 in interest and cuts payoff time from 25 years to 5 years.

What debts should I pay off first?

High-interest consumer debt such as credit cards and payday loans at 15% or higher APR should be prioritised. Low-rate mortgages and student loans are less urgent since investing extra money may yield better returns.

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Υπολογιστής αποπληρωμής χρέους

Calculate how long it will take to pay off debt and compare Avalanche vs Snowball strategies. See total interest saved and create a personalized payoff plan. Free.

Total Debt Balance ($)

Annual Interest Rate (APR %)

Minimum Payment (% of balance)

Extra Monthly Payment ($)

Payoff Strategy

Monthly Payoff Progress

Avalanche vs Snowball Debt Payoff Strategies

⛰️ Debt Avalanche

Pay minimums on all debts, then put extra money toward the highest interest rate debt first. Mathematically optimal — saves the most money in interest.

⛄ Debt Snowball

Pay minimums on all debts, then put extra money toward the smallest balance first. Psychologically powerful — quick wins keep you motivated.

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