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Debt payoff calculators help plan elimination of multiple debts using structured strategies. The two most popular are: Avalanche (highest interest rate first — mathematically optimal) and Snowball (smallest balance first — psychologically motivating).

Водич корак по корак

  1. 1List all debts with balance, interest rate, and minimum payment
  2. 2Avalanche: pay minimums on all, throw extra money at highest-rate debt first
  3. 3Snowball: pay minimums on all, throw extra money at lowest-balance debt first
  4. 4As each debt is paid off, roll that payment into the next target

Worked Examples

Инпут
$5k at 22%, $10k at 8%, $200 extra/month — avalanche
Резултат
Pay high-rate card first, saves most interest
Mathematically superior
Инпут
Same debts — snowball
Резултат
Pay $5k card first, eliminates faster for motivation
Slightly more interest paid overall

Подешавања