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How to use the Debt Payoff Planner
- 1Enter each debt with its balance, interest rate (APR) and minimum payment.
- 2Add the extra amount you can pay every month on top of the minimums.
- 3Compare the avalanche and snowball plans and follow the payoff order of the one you prefer.
Snowball vs avalanche
Both methods pay the minimum on every debt and put all extra money on one target debt. When a debt is paid off, its minimum payment rolls over to the next target, so payments snowball.
The avalanche method targets the highest interest rate first, which always costs the least interest. The snowball method targets the smallest balance first, so you clear whole debts sooner; many people find those quick wins keep them going. The best plan is the one you will stick with.
Frequently asked questions
Should I pay off debt or save?
Most advisers suggest first building a small emergency fund (often one month of expenses) so a surprise bill doesn't go on a credit card, then attacking high-interest debt before investing beyond any employer retirement match.
Does the calculator include changing minimum payments?
No. It keeps your total monthly payment fixed, which is the core of both methods. Credit card minimums usually fall as balances drop; keep paying the same total to finish faster.
Would a balance transfer or consolidation loan help?
Moving high-interest balances to a 0% balance transfer card or a lower-rate loan can save a lot of interest if you pay it off before the promotional rate ends. Watch for transfer fees, usually 3–5%.