Discover the best strategy to eliminate your debt. This tool compares the popular
"Avalanche" and "Snowball" methods to give you a clear, actionable plan for becoming debt-free.
Debt Avalanche Method
The debt avalanche method is a repayment strategy where you focus on paying off the debt with the highest
interest rate first, while making minimum payments on all other debts. Once the highest-interest debt is paid
off, you roll that payment amount onto the next highest-interest debt. This method saves you the most money in
interest over time.
Snowball vs. Avalanche
The key difference is the order of attack. The Avalanche method targets the highest-interest
debt first, which is the most efficient financially. The Debt Snowball method targets the
smallest debt balance first, regardless of interest rate. This can provide powerful psychological wins early
on, keeping you motivated. Our calculator shows you the financial impact of both choices.
How to Use the Calculator
Start by selecting the total number of debts you have. For each debt, enter its current balance, annual
interest rate (APR), and your current monthly payment. The calculator will instantly update below to show you
a comparison of your current path versus the highly efficient avalanche method, detailing your potential
savings in both time and money.