Compare different debt repayment strategies and create a personalized payoff plan
Total Debt: £0
Payoff Time: 0 months
Total Interest Paid: £0
Total Amount Paid: £0
Month | Payment Amount | Principal Paid | Interest Paid | Remaining Balance | Debt Paid Off |
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There are two popular strategies for paying off multiple debts:
The Avalanche method prioritizes paying off debts with the highest interest rates first. This approach:
The Snowball method prioritizes paying off debts with the smallest balances first. This approach:
This calculator helps you compare both strategies and create a personalized debt repayment plan:
Try both methods to see which one works better for your situation. While the Avalanche method saves more money mathematically, the Snowball method might keep you more motivated through the debt repayment journey.
Regardless of which method you choose, the basic process is the same:
This "rolling" of payments creates momentum, like an avalanche or a snowball, giving these methods their names.
This calculator assumes fixed interest rates and that you'll make consistent payments each month. Actual results may vary if interest rates change or if you miss payments.