Add your debts below, set how much extra you can pay each month beyond the minimums, and see how the Avalanche and Snowball strategies compare. The Avalanche method targets the highest interest rate first to save the most money; the Snowball method knocks out the smallest balance first for quick psychological wins.
Pro tip: Even an extra $50–$100 per month can shave years off your payoff timeline and save thousands in interest. Try different amounts to see the impact.
Enter a consolidation loan offer to see if it beats the Avalanche method.
How to Use the Debt Payoff Planner
Enter each of your debts with its current balance, interest rate, and minimum payment. Then set how much extra you can afford to put toward debt each month — this is the key accelerator. The planner instantly runs both the Avalanche and Snowball methods so you can compare results and choose the strategy that fits your personality.
Avalanche vs. Snowball: Which Is Better?
The Avalanche method directs all extra payments to the debt with the highest interest rate first. Mathematically, this always saves the most money and gets you out of debt fastest. The Snowball method targets the smallest balance first, giving you quick wins that keep you motivated. Research shows that people who use the Snowball method are more likely to stick with their payoff plan — the best strategy is the one you actually follow.
The Minimum Payment Trap
Paying only the minimums on a credit card with a $5,000 balance at 22% interest takes roughly 24 years and costs over $9,000 in interest — nearly doubling what you owed. That is because minimum payments are designed to keep you in debt as long as possible. Adding even $100/month above minimums can cut that timeline to under 4 years and save thousands. The “What If” section in this tool shows exactly how much each extra dollar saves.
How the Debt Snowball Builds Momentum
When you pay off your smallest debt, the payment you were making on it rolls into the next smallest debt. This creates a snowball effect — each subsequent debt gets hit with increasingly larger payments. By the time you reach your largest debt, you may be throwing $500 or $1,000 per month at it instead of just the minimum. That acceleration is what makes either method so powerful.
Should You Consolidate?
Debt consolidation rolls multiple balances into a single loan, ideally at a lower interest rate. It can simplify payments and reduce interest — but watch for origination fees (typically 1–6%), which get added to your balance. Pro subscribers can use the Consolidation Analyzer to model a specific offer against the Avalanche strategy. Consolidation only wins if the blended rate plus fees results in less total interest than Avalanche. Run the numbers before signing.
Finding Extra Money for Debt Payoff
The hardest part is finding extra cash. Common strategies: cancel subscriptions you do not use, sell items you no longer need, negotiate lower rates on existing bills, pick up a side gig for a few months, or redirect tax refunds and bonuses to debt. Even small amounts compound: $50/month extra can eliminate a debt months sooner, freeing that entire payment to attack the next one.
Balance Transfer Strategy
A 0% APR balance transfer card can be powerful if you can pay off the transferred amount within the promotional period (usually 12–21 months). Watch for the balance transfer fee (typically 3–5%) and make sure you have a plan to clear the balance before the regular APR kicks in — otherwise you may end up worse off. This tool helps you see whether aggressive self-payoff beats a consolidation or transfer offer.
Looking for related tools? Try our Compound Interest Calculator to see how interest grows over time, or our Break-Even Calculator to find the point where your income covers your costs. Explore all Everyday Math tools.