Multiple Debt Payoff Calculator

Snowball vs. Avalanche: Which Method is Right for You?

When you have multiple sources of debt (credit cards, student loans, medical bills), paying them off can feel overwhelming. Having a strategic plan is essential. The two most proven methods are the Debt Snowball and the Debt Avalanche. This calculator simulates both so you can make an informed decision.

1. The Debt Snowball (Psychological Win)

Popularized by Dave Ramsey, this method focuses on behavior modification over math.

• How it works: List debts from smallest balance to largest. Pay minimums on everything, but throw all extra money at the smallest debt.
• The Benefit: You knock out small debts quickly. Seeing accounts hit $0 gives you a dopamine hit and motivation to keep going.
• The Cost: You might pay more interest overall because you ignore interest rates.

2. The Debt Avalanche (Mathematical Win)

This is the most efficient way to pay off debt mathematically.

• How it works: List debts from highest interest rate to lowest. Attack the debt with the highest APR first.
• The Benefit: You save the most money on interest and typically get out of debt slightly faster.
• The Cost: It might take a long time to see the first debt disappear if your highest interest debt is also a large balance.

Which one should I choose?

Choose Snowball if: You need motivation and quick wins to stick to the plan.
Choose Avalanche if: You are disciplined and want to save every possible penny on interest.
The best strategy is the one you will actually stick to!