Two ways to pay off many debts
Pay the minimum on every debt, then put all your extra money on one debt at a time. When it is gone, its payment moves to the next one, so your total payment each month never drops. The two methods differ in which debt comes first. Snowball goes smallest balance first, which gives quick wins. Avalanche goes highest interest rate first, which usually costs the least in interest.
For a single loan with lump sums, use the loan payoff planner. To find the extra money each month, try the budget planner, and to never miss a due date, the bill calendar.
How to use it
- Enter each debt: a name, the balance, the yearly rate (APR) and the minimum monthly payment. Press Add a debt for more.
- Enter the extra amount you can pay each month on top of all the minimums.
- Compare the three columns. The best plan for interest is highlighted. Download the month-by-month CSV to follow along.
What each column means
- Snowball: extra goes to the smallest balance first.
- Avalanche: extra goes to the highest APR first.
- Minimums only: you pay only the minimums and nothing rolls over, to show the minimum-payment trap.
Worked example
Take a credit card of 5,000 at 24% (minimum 125), a store card of 800 at 29% (35), a car loan of 9,000 at 7% (250) and a student loan of 1,500 at 4% (60), with 200 extra a month. Avalanche pays the store card first, then the credit card, and costs less interest than snowball, which clears the store card then the student loan. Paying only the minimums takes far longer and costs much more.
FAQs
Which method should I pick? Avalanche saves the most money. Snowball can keep you motivated. If the interest difference is small, choose the one you will stick with.
What if the minimums grow or the rates change? Update the numbers and run it again. This tool assumes a fixed rate and fixed minimums.
Why does it say “Never”? Your payments are smaller than the interest each month, so the balance never goes down. Add extra or ask your lender for a lower rate.
Where the numbers come from
- Standard monthly compounding: each month's interest is balance x APR / 12. The snowball and avalanche methods are common, widely taught payoff orders.
Standard scientific values, such as constants, atomic weights and melting points, are facts found in every textbook; we name where ours were checked. If you are an author or publisher and want a value, a credit or a table changed or removed, tell us and we will act quickly.
Last updated 2026-11-10.