Debt Payoff Calculator
Create your debt elimination strategy
Plan Your Debt Freedom
Add your debts to see your personalized payoff strategy
Debt Elimination Tips
Choose Your Strategy
Debt avalanche saves money, debt snowball builds momentum. Pick what motivates you most.
Find Extra Money
Cut expenses, sell items, or take on side work to accelerate your debt payoff timeline.
Stop Using Credit
Avoid adding new debt while paying off existing balances. Consider removing cards from your wallet.
Debt Strategy Comparison
Choose the right debt payoff strategy based on your personality and goals:
Debt Freedom Timeline
Helpful Resources
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method focuses on paying off the smallest debt balances first, regardless of interest rate. This builds momentum and motivation by providing quick wins, which can be psychologically powerful for staying committed to debt elimination.
What is the debt avalanche method?
The debt avalanche method targets debts with the highest interest rates first. This approach minimizes the total amount of interest paid over time, making it mathematically the most cost-effective debt payoff strategy.
Which debt payoff strategy is better?
The debt avalanche saves more money mathematically, but the debt snowball provides psychological benefits through quick wins. Choose based on your personality: if you need motivation, use snowball; if you prefer saving money, use avalanche.
Should I pay minimum payments on all debts?
Yes, always make minimum payments on all debts to avoid late fees and credit damage. Then apply any extra money toward your target debt based on your chosen strategy (snowball or avalanche).
Important Disclaimer
This debt payoff calculator provides estimates for planning purposes only. Actual results may vary based on payment consistency, interest rate changes, fees, and other factors.
Key considerations:
- Interest rates may be variable and subject to change
- Late fees and penalties can significantly impact payoff timelines
- Credit card companies may change terms and minimum payments
- Consider the psychological benefits of quick wins vs. mathematical savings
- Consult with a qualified financial advisor for personalized debt management strategies
Always make minimum payments on all debts to avoid damaging your credit score. Consider credit counseling if you're struggling with debt payments.
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