Create your personalized debt-free plan
How much extra can you put toward debt each month? This goes to your target debt after minimums are paid.
Enter your credit cards, loans, and other debts to see your personalized payoff plan.
Getting out of debt requires more than just making minimum payments—it requires a strategy. The two most popular debt payoff methods are the Debt Avalanche and Debt Snowball. Both work, but they approach debt elimination differently, and understanding which one fits your psychology can mean the difference between success and giving up.
The average American household carries over $7,000 in credit card debt alone, often at interest rates of 20% or higher. At those rates, making minimum payments can take decades to pay off and cost more in interest than the original purchases. That's why having a focused payoff strategy is so important.
The two main strategies:
This calculator compares both methods side-by-side, showing you exactly how much each approach costs and how long it takes. The best strategy is the one you'll stick with—for many people, the psychological motivation of the Snowball outweighs the mathematical advantage of the Avalanche.
Our debt payoff calculator creates a personalized repayment plan for all your debts. Here's how to get the most accurate results:
The results show your debt-free date, total interest paid, and a month-by-month payoff schedule for each strategy. Use this to create your action plan.
🏔️ Debt Avalanche Method
Focus extra payments on the highest interest rate debt first, regardless of balance. Make minimum payments on all other debts. When the highest-rate debt is paid off, move to the next highest.
Pros: Saves the most money mathematically. Cons: May take longer to see your first debt eliminated if the highest-rate debt has a large balance.
⛄ Debt Snowball Method
Focus extra payments on the smallest balance first, regardless of interest rate. This creates quick wins as you eliminate debts faster, building momentum and motivation.
Pros: Psychological wins build momentum. Cons: May pay more in total interest over time.
💡 The Bottom Line
Research by Harvard Business Review found that people using the Snowball method are more likely to successfully eliminate all their debt. The psychological boost of quick wins often outweighs the mathematical advantage of Avalanche. Choose the method you'll stick with—a "suboptimal" strategy that you complete beats an "optimal" strategy you abandon.
How long will it take to pay off my debt?
It depends on your total balance, interest rates, and how much you can pay. Making only minimum payments on credit cards can take 15-30 years. Doubling or tripling your payments can cut that to 2-5 years. Use this calculator to see your specific timeline.
Should I save money or pay off debt first?
Build a small emergency fund first ($1,000-$2,000) to avoid going back into debt for unexpected expenses. Then focus on paying off high-interest debt. Once debt is eliminated, build your full emergency fund (3-6 months expenses) and start investing.
Does paying off debt hurt my credit score?
Temporarily, closing accounts can lower your score slightly due to reduced available credit. However, the long-term benefits of less debt far outweigh this. Your score will recover and improve as you maintain low balances and on-time payments.
Should I use a balance transfer card?
Balance transfer cards with 0% APR promotional periods can save significant interest—if you can pay off the balance before the promo ends and avoid new purchases. Transfer fees are typically 3-5%. Calculate whether the interest savings exceed the fee before transferring.
Is debt consolidation a good idea?
Consolidation can simplify payments and potentially lower your interest rate. However, it only works if you stop accumulating new debt. A lower monthly payment stretched over a longer term might cost more in total interest. Run the numbers before consolidating.
What about debt settlement or bankruptcy?
These are last-resort options that significantly damage your credit and have tax implications. Debt settlement companies often charge high fees and may not deliver results. Consult with a non-profit credit counselor before considering these options.
How do I stay motivated during debt payoff?
Track your progress visually (debt payoff thermometer, spreadsheet, app). Celebrate milestones when you pay off each debt. Find a community or accountability partner. Remember why you're doing this—financial freedom, reduced stress, future goals. Small wins add up.
Identify subscriptions, dining out, and other discretionary spending you can pause. Redirect every extra dollar to debt. This is temporary—you'll resume normal spending once debt-free.
Take on a side hustle, sell unused items, or ask for a raise. Apply 100% of extra income to debt. Even $200-$500/month extra makes a dramatic difference in your payoff timeline.
Call your credit card companies and ask for a lower rate, especially if you've been a good customer. Even a few percentage points reduction saves money and accelerates payoff.
Cut up cards, freeze them, or lock them away. You can't fill a bucket with a hole in it. Use cash or debit for purchases while paying off debt.