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Debt Snowball

Two battle-tested strategies for paying off multiple debts: the Debt Snowball (pay minimums everywhere, attack smallest balance first) and the Debt Avalanche (attack highest interest rate first). Our calculator runs both side-by-side, showing total interest paid and payoff date for each strategy so you can make an informed choice.

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À propos de Debt Snowball & Avalanche Calculator

Two battle-tested strategies for paying off multiple debts: the Debt Snowball (pay minimums everywhere, attack smallest balance first) and the Debt Avalanche (attack highest interest rate first). Our calculator runs both side-by-side, showing total interest paid and payoff date for each strategy so you can make an informed choice.

Comment l'utiliser

  1. Add all debts: name, balance, interest rate, minimum payment.
  2. Enter your total monthly debt payment budget.
  3. See the payoff schedule for both Snowball and Avalanche strategies.
  4. Compare: total interest paid and months to debt freedom for each method.

Formule et méthodologie

Both methods: pay minimums on all debts; apply extra payment to the target debt. Snowball: sort by balance ascending. Avalanche: sort by interest rate descending. When target debt is paid: roll that payment to the next debt (the "snowball/avalanche" grows). Total interest = Σ(balance × rate × months). Avalanche always costs less interest; Snowball provides earlier wins.

Cas d'usage courants

  • Credit card payoff: applying extra monthly cash toward eliminating balances
  • Student loan repayment: ordering multiple loans strategically
  • Combined debt: car loan + credit cards + personal loan payoff plan
  • Quantifying the cost of Snowball's motivational benefit vs Avalanche's financial optimality
  • Determining when to use extra income (bonus, tax refund) as a lump-sum payoff

Questions fréquentes

Avalanche always results in less total interest paid — sometimes significantly less with high-rate debts. However, research (including work by Kellogg School professors) shows that the Snowball method leads to higher actual payoff rates because early wins sustain motivation. The "best" strategy is the one you actually stick to. If you have strong discipline, use Avalanche. If you need motivation, Snowball's early wins make the difference between finishing and quitting.
Apply it as a lump-sum extra payment to the current target debt (whichever Snowball or Avalanche points you at). Do not split it across all debts — concentration on one debt is more efficient. One exception: if you have a debt with a prepayment penalty, check the penalty vs interest savings first. After all high-interest debt (>7%) is paid, pivot lump sums to an emergency fund before investing.

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