Debt payoff calculator

Snowball or avalanche: which should you pick?

Both methods pay the minimum on every debt and put any extra toward one target debt. The snowball attacks your smallest balance first, which gives quick wins that keep you going. The avalanche attacks the highest interest rate first, which costs you the least in interest overall. The numbers are the same either way, so avalanche is usually cheaper while snowball can be easier to stick with.

What the plan assumes

• That the minimums stay put. Card minimums are usually a percentage of the balance, so they shrink as you pay down, and paying only the falling minimum stretches the debt out for years.
• That the rates hold. An introductory rate that ends, or a card that reprices, can reorder which debt the avalanche should attack next. Re-check after any rate letter.
• That refinancing is off the table. Moving expensive card debt to a cheaper loan often beats either method outright, and is worth pricing before you commit to a plan.