| Strategy | Payoff Time | Total Interest | Total Paid |
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View Payoff Order & Monthly Schedule
| Month | Target / Payoff | Payment | Interest | Total Balance |
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Debt Avalanche vs. Debt Snowball
The debt avalanche directs extra money to the active debt with the highest APR while required minimums continue on the others. Mathematically, prioritizing the costliest rate generally reduces interest when other assumptions are equal.
The debt snowball directs extra money to the smallest balance first. When that debt is gone, its payment is rolled into the next target. The CFPB describes this method as a way to see progress quickly, while noting that it can cost more over time than prioritizing the highest-interest debt.
Why Minimum Payments Matter
Credit-card minimum-payment formulas vary by issuer and account. Rather than inventing a generic “2% minimum,” this calculator asks you to enter the actual required minimum shown for each debt. CFPB rules for issuer repayment disclosures likewise account for the minimum-payment formula that applies to the account.
If a minimum payment is not enough to cover that month's modeled interest and the debt is not the current extra-payment target, the calculator flags the plan because the balance can grow. If you cannot make required minimums, CFPB recommends contacting the card company promptly and discussing what you can afford rather than simply ignoring the bill.
Debt Payoff FAQ
Which method saves more interest, avalanche or snowball?
When the payment budget and debt terms are otherwise the same, targeting the highest APR first generally minimizes interest. Snowball instead prioritizes the smallest balance, which can create earlier visible payoffs. The comparison table above calculates both using your entered debts.
What happens to a payment after one debt is paid off?
The calculator keeps the overall payoff budget available and redirects the freed payment toward the next target. That rollover is the key acceleration mechanism in both strategies.
Should I enter my statement minimum or calculate one?
Enter the current required minimum payment from your account information. Issuer formulas differ and can change as balances change. For planning, this calculator treats the entered minimum as the required amount while the debt remains active, capped by the remaining amount due.
Does this model promotional or deferred-interest balances?
No. Promotional APR expiration, deferred interest, balance-transfer fees, late fees and changing APRs can materially alter payoff results. CFPB notes that deferred-interest plans can charge previously deferred interest if their conditions are not met, so model those offers using their actual terms rather than a constant APR assumption.
What if I cannot afford all minimum payments?
This calculator is a payoff planning tool, not a substitute for assistance. CFPB recommends contacting your credit card company immediately if you cannot pay the minimum and says nonprofit credit counseling may also be an option.
Consumer guidance: CFPB debt reduction strategies, CFPB guidance when you cannot pay a credit-card bill, and CFPB Regulation Z repayment-disclosure methodology.