Jinsi ya kukokotoa Debt Payoff
Debt Payoff ni nini?
A debt payoff calculator shows how to eliminate multiple debts using the avalanche (highest interest first) or snowball (lowest balance first) method, with total interest and payoff date.
Fomula
Snowball: smallest balance first. Avalanche: highest rate first. Time = principal / (monthly_payment − interest_per_month)
- P
- Principal balance (currency)
- r
- Interest rate (%)
- PMT
- Monthly payment (currency)
Mwongozo wa Hatua kwa Hatua
- 1Avalanche: pay minimums on all; throw extra money at highest APR debt first — minimises total interest
- 2Snowball: pay minimums on all; attack smallest balance first — fastest early wins, more motivating
- 3After one debt paid off: redirect its payment to the next target
- 4Total interest saved vs minimum payments can be thousands
Mifano Iliyotatuliwa
Ingizo
$10k at 20%, $5k at 15%, $2k at 10% — $300 extra/month, avalanche
Matokeo
Attack $10k debt first; saves most interest overall
Maswali yanayoulizwa mara kwa mara
What's the debt snowball method?
Pay minimums on all debts, attack smallest balance first. Psychological wins motivate continued payoff.
Is avalanche method better?
Mathematically, yes—saves more interest. Snowball is better behaviorally for some people (quick wins).
How much extra should I pay?
Any extra goes to principal. 10-20% above minimum accelerates payoff significantly and saves interest.