How to Pay Off Debt Faster — Snowball vs Avalanche Guide

Step-by-step guide to using the Debt Payoff Calculator. Compare snowball and avalanche methods, enter your debts, and see your debt-free date.

1. Step 1: Add each debt
   Click 'Add Debt' and enter the name (e.g., 'Visa Card'), current balance, annual interest rate (APR), and minimum monthly payment. Add all your debts: credit cards, personal loans, student loans, car loans.
2. Step 2: Set your total monthly payment budget
   Enter the total amount you can put toward debt each month. Even $50–$100 above the minimum total makes a significant difference to your payoff timeline.
3. Step 3: Choose Snowball or Avalanche
   Snowball: pay off the smallest balance first for quick psychological wins. Avalanche: pay off the highest interest rate first to minimise total interest paid. Both strategies work — pick the one that keeps you motivated.
4. Step 4: Review your payoff timeline
   The calculator shows month-by-month progress, your projected debt-free date, and total interest paid. Compare both methods to see which saves more money.
5. Step 5: Adjust and optimise
   Try increasing your monthly payment by $50 or $100 and see how much earlier you become debt-free. Small increases have an outsized impact on high-interest debt.

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