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Debt Payoff Strategy Planner

Find the right strategy to pay off multiple debts most efficiently.

Your Debts

Debt Name Balance Interest (%) Min. Payment
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Additional amount above minimum payments each month

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Determines which debt receives the extra payment

How Do Debt Payoff Strategies Work?

Both strategies make minimum payments on all debts, but direct extra payments to different debt priorities.

Avalanche Method

Extra payments are directed to the debt with the highest interest rate. This method minimizes total interest cost and is the most mathematically efficient strategy.

Snowball Method

Extra payments are directed to the debt with the smallest balance. Debts are paid off quickly, providing psychological motivation. Popularized by Dave Ramsey.

How Does It Work?

  1. Minimum payments are made on all debts.
  2. Extra payment is directed to the priority debt based on the chosen strategy.
  3. When a debt is paid off, its minimum payment is added to the next priority debt.
  4. This process continues until all debts are paid off.

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