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Debt Payoff Calculator

Compare avalanche vs snowball debt payoff strategies. Calculate how long to pay off debt and total interest paid.

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Snowball vs Avalanche: Which Is Better?

Both methods work — the best one is whichever you'll stick with consistently. The avalanche method always saves more on interest, but the difference can be small depending on your specific debts.

Avalanche Method (Saves the Most Money)

  1. Make minimum payments on all debts
  2. Put every extra dollar toward the debt with the highest interest rate
  3. When that debt is paid off, roll the payment into the next highest rate

Best when you have high-interest debts (credit cards at 20%+) and can stay motivated without quick wins.

Snowball Method (Fastest Motivation)

  1. Make minimum payments on all debts
  2. Put every extra dollar toward the smallest balance
  3. When that debt is eliminated, roll the payment into the next smallest

Best when you need psychological wins to stay on track. Eliminating a debt entirely — even a small one — builds momentum.

Real Example: $30,000 in Debt

With four debts totaling $30,000 and $1,000/month budget, the avalanche method typically saves $200-$1,300 in interest and finishes 1-2 months sooner than snowball. The gap widens when interest rates vary significantly between debts.

Hybrid Approach

Start with snowball for the first few months to eliminate 1-2 small debts and build momentum. Then switch to avalanche for the remaining higher-balance debts to minimize interest.

How Extra Payments Make a Difference

On $10,000 of credit card debt at 22% APR with $200 minimum payments, it takes 9.5 years and costs $12,900 in interest. Adding just $100 extra per month cuts payoff to 3.5 years and saves over $8,000 in interest.

How to Get Out of Debt Faster

  • Stop adding debt: Freeze or cut credit cards — don't close accounts (hurts credit score)
  • Negotiate rates: Call your credit card company and ask for a lower APR. Success rate is roughly 70%
  • Balance transfer: Move high-interest debt to a 0% intro APR card (watch for transfer fees)
  • Increase income: Direct side hustle or overtime earnings straight to debt
  • Automate payments: Set up auto-pay above the minimum to guarantee progress
  • Debt consolidation loan: Combine multiple debts into one lower-rate payment

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Frequently Asked Questions

Which is better, the debt avalanche or the debt snowball?

The avalanche saves more money; the snowball gives faster wins. The avalanche method pays the highest interest rate first, which minimizes total interest. The snowball method pays the smallest balance first, so accounts close sooner and motivation stays high. Both pay minimums on every other debt and roll freed-up payments forward.

How much does the avalanche method save over the snowball?

Typically a few hundred dollars. With three debts at 24, 18 and 12 percent APR totaling $12,000 and a $400 monthly budget, the avalanche method saves roughly $300 to $800 in interest compared with the snowball, depending on how the balances are distributed across the three debts.

Should you close a credit card after paying it off?

Generally no. Closing the account reduces total available credit, which raises the credit utilization ratio and can lower the credit score. Keeping the card open with a zero balance protects the score. Close it only if an annual fee or the temptation to spend outweighs that benefit.

What happens if you only pay the minimum on your debts?

Minimum payments, typically 1 to 3 percent of the balance or a flat dollar floor, extend payoff by years and maximize total interest. Even an extra $30 to $50 a month aimed at the highest-rate balance can cut months off the timeline and save hundreds of dollars in interest.