Debt Payoff Calculator
Compare debt avalanche vs snowball strategies to eliminate your debts faster and save money on interest payments.
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Payoff Strategy Comparison
Debt Avalanche Method
Pay minimums on all debts, then put extra money toward the highest interest rate debt first.
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Time to Pay Off
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Payoff Order (Highest Interest First)
Which Strategy is Better?
Add your debts above to see which payoff strategy works best for your situation.
💳 Debt Payoff Strategies Explained
There are two main strategies for paying off multiple debts: the avalanche method and the snowball method. Each has its advantages depending on your situation and personality.
🏔️ Debt Avalanche Method
How it works: Pay the minimum on all debts, then put any extra money toward the debt with the highest interest rate.
- Pros: Saves the most money on interest over time
- Pros: Mathematically optimal approach
- Cons: Can be less motivating if highest-rate debt has a large balance
- Best for: People motivated by numbers and long-term savings
⛄ Debt Snowball Method
How it works: Pay the minimum on all debts, then put any extra money toward the debt with the smallest balance.
- Pros: Provides quick wins and psychological motivation
- Pros: Builds momentum as you eliminate debts
- Cons: May cost more in interest over time
- Best for: People who need motivation and quick victories
🎯 Tips for Success
- Stop adding new debt: Don't accumulate new debt while paying off existing ones
- Create a budget: Track your expenses to find more money for debt payments
- Consider debt consolidation: Look into lower-interest options like personal loans or balance transfers
- Build an emergency fund: Even £500-£1000 can prevent new debt from unexpected expenses
- Stay consistent: Make payments on time every month