Debt Payoff Planner
Compare Avalanche vs Snowball strategies and find your fastest path to debt freedom
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Total monthly budget: $670
Avalanche vs. Snowball: Which is Right for You?
Both strategies work — the best one is the one you'll stick with. The avalanche saves the most money; the snowball builds momentum.
Guide
How it works
The Avalanche method targets the highest-interest debt first, minimizing total interest paid. The Snowball method targets the smallest balance first, giving you quick psychological wins. Both strategies pay minimums on all other debts.
As each debt is paid off, that payment "rolls" into the next target, accelerating payoff speed over time. Adding any extra monthly payment significantly reduces both time and interest.
Simulation assumes minimum payments stay constant. Actual results may vary with balance changes and interest compounding.
Which strategy saves more money?expand_more
Avalanche almost always saves more money in total interest because you eliminate high-rate debt first. Snowball may cost more in interest but provides motivational milestones by clearing individual debts faster.
What if I can't afford more than minimums?expand_more
Paying only minimums on high-interest debt means most of each payment goes to interest. Even an extra $25–$50/month can meaningfully reduce payoff time. Consider temporarily reducing expenses or finding additional income.
Should I pay off debt or invest?expand_more
Generally, if your debt interest rate exceeds your expected investment return (typically 6–8% for diversified portfolios), prioritize paying off the debt. Low-rate debt (under 4–5%) may not be worth rushing to pay off if you can invest at higher returns.
How does the debt snowball effect work?expand_more
When you pay off a debt completely, you redirect that payment to the next debt on your list. Since you're now putting more money toward fewer debts, the payoff speed accelerates exponentially — this is the snowball effect.
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