Debt Payoff Calculator

Debt Payoff Strategies

Two proven methods to pay off multiple debts faster and save money on interest charges.

Debt Avalanche Method

• Strategy: Pay minimums on all debts, extra payment goes to highest interest rate
• Benefits: Saves the most money in interest charges
• Best for: People motivated by mathematical optimization
• Example: Pay off 24% credit card before 15% personal loan

Debt Snowball Method

• Strategy: Pay minimums on all debts, extra payment goes to smallest balance
• Benefits: Builds momentum and motivation with quick wins
• Best for: People who need psychological motivation
• Example: Pay off $5,000 balance before $50,000 balance

Getting Started

• List All Debts: Include balance, minimum payment, and interest rate
• Determine Extra Payment: How much extra can you afford monthly?
• Choose Strategy: Avalanche for savings, Snowball for motivation
• Stay Consistent: Make payments on time every month

Region-Specific Tips

• Use the debt avalanche method to save the most on interest
• Consider balance transfers to lower interest rates
• Stop using credit cards while paying off debt
• Find extra income through side hustles
• Use tax refunds and bonuses for debt payments

Common Interest Rates

• Credit Cards: ~24% APR
• Personal Loans: ~15% APR
• Mortgages: ~6% APR
• Student Loans: ~5% APR

Tips for Success

• Stop Adding Debt: Don't use credit cards while paying off
• Find Extra Money: Cut expenses, increase income
• Automate Payments: Set up automatic transfers
• Track Progress: Celebrate milestones along the way