Debt Payoff Calculator
Calculate how long it will take to pay off your debt and how much interest you'll pay with our free debt payoff calculator.
Category: Financial
Debt Payoff Calculator: Snowball vs. Avalanche Method Comparison
Free debt payoff calculator that compares snowball vs. avalanche methods to become debt-free faster. Create a personalized plan to eliminate credit cards, loans, and other debts with the most efficient strategy.
Category: Calculator
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Frequently Asked Questions
How do I pay off debt quickly?
To pay off debt quickly: 1) Create a budget and find areas to cut expenses, 2) Use the debt avalanche method (paying highest interest debts first) or the debt snowball method (paying smallest balances first), 3) Make more than the minimum payments whenever possible, 4) Consider consolidating high-interest debts, and 5) Look for ways to increase your income.
What is the debt snowball method?
The debt snowball method involves paying minimum payments on all debts while putting extra money toward the smallest debt balance. Once the smallest debt is paid off, you roll that payment into the next smallest debt, creating a 'snowball' effect. This method provides psychological wins that keep you motivated, even though it may not be mathematically optimal.
What is the debt avalanche method?
The debt avalanche method involves paying minimum payments on all debts while putting extra money toward the debt with the highest interest rate. Once that debt is paid off, you move to the next highest interest rate debt. This method minimizes the total interest paid and is mathematically optimal, though it may take longer to see the first debt eliminated.