January 25, 2025 • 8 min read
A detailed comparison of the two most popular debt payoff strategies, including real-life examples showing how much you could save with each approach.
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May 01, 2025 • 10 min read
Practical tips for adjusting your budget to allocate more funds toward debt repayment without feeling deprived or overwhelmed.
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April 12, 2025 • 7 min read
Proven psychological techniques to maintain momentum when paying off debt feels like a marathon rather than a sprint.
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March 22, 2025 • 9 min read
An honest look at debt consolidation options, including balance transfer cards, personal loans, and home equity, with advice on avoiding common pitfalls.
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February 18, 2025 • 6 min read
Expert advice on balancing debt repayment with saving for emergencies to avoid going deeper into debt when unexpected expenses arise.
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January 5, 2025 • 8 min read
How to transition from debt payoff to building wealth, including how to allocate the money you were using for debt payments to secure your financial future.
Read More →Start by entering how much you can realistically pay toward your debts each month. This should be an amount you can consistently maintain. Be honest with yourself - it's better to start with a slightly lower amount you can stick with than an ambitious number you might not sustain.
If you're not sure how much you can allocate, consider tracking your expenses for a month to identify areas where you can cut back. Even small amounts add up over time!
For each debt you owe, enter:
Don't forget to include all types of debt: credit cards, personal loans, student loans, medical bills, etc. The more accurate your information, the more precise your results will be.
Select which payoff strategy you want to calculate:
Prioritizes debts with the highest interest rates first, saving you the most money on interest payments over time.
Focuses on paying off smallest balances first for quick wins and psychological motivation.
For the most comprehensive comparison, click "Compare Both Methods" to see side-by-side results.
Our calculator will show you:
Pay special attention to the interest savings difference between methods. For some people, this can amount to thousands of dollars!
Based on your results, decide which method aligns best with your financial situation and personality. Some people prefer the mathematically optimal approach (Avalanche), while others benefit more from the psychological wins of the Snowball method.
Remember, the best method is the one you'll stick with consistently. You can always adjust your strategy later as your financial situation changes.
The Avalanche method prioritizes paying off debts with the highest interest rates first, regardless of balance. This approach saves you the most money in interest payments over time.
The Snowball method focuses on paying off your smallest debts first (regardless of interest rate), giving you quick wins that can provide psychological motivation to continue your debt payoff journey.
Mathematically, the Avalanche method is superior because it minimizes the total interest you'll pay. However, the Snowball method can be more effective for people who need psychological wins to stay motivated.
The "better" method depends on your personality and financial situation. Our calculator helps you compare both approaches so you can make an informed decision.
It's generally recommended to maintain at least a small emergency fund (e.g., $1,000) while paying off debt to avoid going deeper into debt when unexpected expenses arise.
Once you have this basic safety net, you can focus most of your available funds on debt repayment. After becoming debt-free, you can then build a more substantial emergency fund (3-6 months of expenses).
If you're struggling to make minimum payments, consider these options:
Our calculator can help you see how even small increases in your monthly payment can make a significant difference over time.
Our calculator uses standard amortization formulas to provide accurate estimates of your debt payoff timeline and total interest paid.
However, results are estimates based on the information you provide and assume:
Yes! Some people find success with a hybrid approach:
Our calculator lets you compare both methods so you can design a personalized strategy that works for you.
Congratulations on becoming debt-free! Here's what to do next:
The money you were using for debt payments can now work toward building your wealth!
It's good practice to revisit your plan:
Regular check-ins help you stay on track and make adjustments as needed.
Yes, you can include your mortgage in the calculator. However, mortgages typically have much lower interest rates than credit cards or personal loans.
For most people, it makes sense to prioritize higher-interest debt before making extra mortgage payments. Our calculator can help you see the impact of different approaches.
Currently, our calculator doesn't save your data automatically between sessions. However, you can:
We're working on adding account features that will allow you to save multiple scenarios.