Debt Payoff Calculator
Compare the avalanche and snowball methods to pay off credit cards and loans. See exactly when you'll be debt-free and how much interest you'll save.
Frequently Asked Questions
What is the avalanche vs. snowball method?
The avalanche method pays minimum payments on all debts and puts extra money toward the highest-interest debt first. This saves the most money in interest. The snowball method targets the smallest balance first, regardless of interest rate, for psychological wins that keep you motivated. Mathematically, avalanche wins; behaviorally, snowball often keeps people on track longer. Choose what fits your personality.
How long does it take to pay off credit card debt?
It depends on the balance, rate, and payment amount. A $5,000 balance at 20% APR paying only the minimum ($100/month) takes over 9 years and costs $4,000+ in interest. Paying $250/month on the same debt clears it in about 24 months with under $1,200 in interest. Even small payment increases dramatically shorten payoff time.
Is debt consolidation worth it?
Debt consolidation replaces multiple high-interest debts with a single lower-interest loan, reducing your interest rate and simplifying payments. It makes mathematical sense when the consolidation loan rate is significantly lower than your current rates (e.g., moving from 20% credit card debt to a 10% personal loan). The risk: paying off credit cards and then running them back up doubles your problem. Consolidation works best with a spending plan in place.