Debt Calculator
Compare debt repayment strategies and find the best way to pay off your debts
Your Debts
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Consolidation Loan (Optional)
Debt Summary
Debt Repayment Strategies
| Strategy | APR | Total Interest | Payoff Time | Monthly Payment |
|---|---|---|---|---|
| Minimum Payment | 14.93% | $-3,565.689 | 40 mos | $340 |
| Snowball Method | 14.93% | $-3,325.54 | 53 mos | $340 |
| Avalanche Method | 14.93% | $-2,692.492 | 63 mos | $340 |
| Debt Consolidation | 9.50% | $-2,472.756 | 41 mos | $350.731 |
💰 Best for Savings
Minimum Payment saves the most money
Total interest: $-3,565.689
âš¡ Fastest Payoff
Minimum Payment pays off debts quickest
Payoff time: 40 months
Debt Management Tips
List All Debts
Write down all balances, interest rates, and minimum payments
Choose a Strategy
Pick avalanche for savings or snowball for motivation
Pay More Than Minimum
Even small extra payments can save thousands in interest
Avoid New Debt
Focus on paying off existing debt before taking on new debt
Strategy Comparison
Minimum Payment
Lowest monthly cost but highest total interest
Snowball Method
Pay smallest balances first - great for motivation
Avalanche Method
Pay highest rates first - saves most money
Consolidation
Combine all debts into one payment
Understanding Debt Repayment Strategies
What is Debt?
Debt is money borrowed by one party from another, typically with the agreement to repay the amount plus interest by a specific date. Common types include credit cards, mortgages, auto loans, and personal loans.
Why Debt Management Matters
- ✓Saves thousands in interest payments
- ✓Improves credit score faster
- ✓Reduces financial stress
- ✓Frees up money for other goals
Choosing the Right Strategy
Avalanche Method
Best for: Saving the most money
Pay minimums on all debts, then put extra money toward the debt with the highest interest rate.
Snowball Method
Best for: Building momentum and motivation
Pay minimums on all debts, then put extra money toward the debt with the smallest balance.
Debt Consolidation
Best for: Simplifying payments
Combine multiple debts into one loan, potentially with a lower interest rate.
List All Debts
Gather balances, rates, and minimum payments
Choose Strategy
Pick the method that fits your goals
Execute Plan
Stick to your chosen strategy consistently