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Snowball or Avalanche - Optimize Your Debt Payments

Pay Off Your Debt Quicker

Three Steps to Snowball Debt or Avalanche Debt Payment
  1. Collect Information About Your Unsecured Debts

    First, collect information about your debts. Start by getting a free credit report.
  2. Figure out How Much You Can Pay

    Avoid minimum payments by keeping your payments constant. Even better, pay off your debts more aggressively. 

     
  3. Snowball, Avalanche, or...?

    Paying off your debts means sticking to the plan. Some people, such as David Ramsey, suggest that you pay off your lowest balance first. The psychological boost keeps you on track.

    However, if you start with the highest interest rate, then you are going to save the most money.

    One other way to pay off your debt quicker and save money is to take out a debt consolidation loan. If you qualify for a low-interest loan (or at least lower than your current debt), then you can save money and optimize your debt payments.

    Use the Snowball Debt Calculator to find out exactly much you can save.

Pay off Debt Calculator

Pay off your unsecured debt quicker and save money. Use the Snowball calculator to see just how much you can save by paying a fixed amount or adding extra each month.

In order to pay off you debt more efficiently include all of your credit card and unsecured debt. Include the Balance, Interest, Rate, and Minimum Monthly payment.

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Please enter valid Balance, APR and Monthly Payment!
Total Debt
Balance
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Monthly Payment
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Calculate

This scenario assums that you will continue to make the same payments for each of the debts

When you finish paying off one, then reduce your overall monthly payments.You will be out of debt based on longest payoff period.

If you can't afford those payments, then look at the minimum payment calculator for the lowest possible credit card payments. Expect to pay a large interest bill.

Check the longest monthly payoff period to see when you will be out of debt.

Total Scheduled Interest - original payments
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Keep your overall payment constant.

This scenario shows you what happens if you rolled all of your debt into a debt consolidation loan, based on your average interest rate, current balance and current monthly payment.

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Take a second to consider if you can qualify for a personal loan at a rate better than your average interest rate? If so, you can consolidate your payments and save money. Check here for more information.

Get A Personal Loan Offer
Next

Do you have extra cash? Do you want to pay off your debt quicker? Then add extra money to your monthly payment and cut your interest expenses? Check out how much you can save.

Choose between the snowball method (lowest balance first) which for some gives a psychological gain of accomplishment, and the avalanche method (highest interest rate first), which brings the most savings.

Calculate Extra Payment

Compare the results based on the total amount of interest you pay and the amount of time it takes to pay off your debt.

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Snowball
Original Schedule - Declining Payments
Total Interest
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Total Months Till Debt Free
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Monthly Payment
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Fixed Payment - No extra
Total Interest
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Total Months Till Debt Free
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Monthly Payment
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Fixed Payment - Extra Payment
Total Interest
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Total Months Till Debt Free
0 months
Monthly Payment
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Paying off Debt Questions

A debt consolidation loan can save you money if you have high interest rates. To get the best rates you need an excellent credit score. However, if your current credit card rates are very high, or you need to consolidate medical and other bills, then a debt consolidation loan might be a good alternative.

Minimum payments are a costly way to pay off your debt. The Debt Payoff (Snowball) Calculator shows how much you pay if you don't reduce your monthly payments. 

However, minimum monthly payments is a declining payment schedule and stretch out your debt payoff period. For more precise details, check Bills.com Minimum Payment Calculator.

If you can't afford your minimum payments, then take a serious look at your budget, or try to work out a debt settlement or bankruptcy solution.

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