Debt Payoff
Planner
Enter all your debts and see exactly when you'll be debt-free. Compare avalanche (saves most interest) vs snowball (fastest wins) strategy.
Your debts
Add each debt you want to pay off. Minimum payment is what you currently pay each month.
Extra monthly payment
Any extra money you can put toward debt each month beyond minimums. Even $100/mo makes a huge difference.
Strategy
🏔 Avalanche
Pay highest interest rate first — saves the most money overall
⛄ Snowball
Pay smallest balance first — quickest wins, better motivation
Your payoff plan
Results are estimates for informational purposes only — not financial advice. Always consult a licensed professional before making decisions. Terms of use →
Debt payoff FAQs
What is the avalanche method?
The avalanche method pays minimum payments on all debts, then puts any extra money toward the debt with the highest interest rate. Once that's paid off, the payment rolls to the next highest rate. Mathematically this saves the most money in interest over time.
What is the snowball method?
The snowball method pays minimum payments on all debts, then puts extra money toward the debt with the smallest balance. Once it's paid off, that payment rolls to the next smallest. Research shows this builds momentum and motivation — many people stick with it longer, making it more effective in practice for some people.
Which method is better — avalanche or snowball?
Mathematically, avalanche saves more money. Psychologically, snowball provides faster wins. If you're disciplined about the process and motivated by math, use avalanche. If you need quick wins to stay motivated, use snowball. The best method is the one you actually stick to.
How much extra payment makes a real difference?
Even $100/month extra can save thousands in interest and years off your debt. This is because extra payments go directly to principal, reducing the balance that interest is calculated on. Use this calculator to see the exact impact of different extra payment amounts on your specific debts.
Getting debt-free in Canada — what actually works
Canadian household debt is among the highest in the developed world. Here is how to break free.
Avalanche (highest rate first) saves the most money mathematically — sometimes thousands in interest. Snowball (smallest balance first) creates quick wins that keep you motivated. Research shows most people stick longer with snowball, making it more effective in practice for those who struggle with consistency.
The average Canadian credit card charges 19.99% interest. At this rate, carrying a $5,000 balance costs $1,000/year in interest alone. The minimum payment trap is devastating: paying only minimums on $10,000 at 19.99% takes over 30 years to pay off and costs more than the original debt in interest.
Many Canadian credit cards offer 0% balance transfer promotions for 6–12 months. Transferring high-interest debt to a 0% card and paying it aggressively during the promo period can save hundreds. The catch: balance transfer fees (typically 1–3%) and the full rate kicks in at the end of the promo.
Options for Canadians: personal loan (7–12% vs 20% credit cards), HELOC (5.95% if you own a home), credit union loans (often better rates than banks), and consumer proposals (legal process through Licensed Insolvency Trustee for severe cases). Never pay a "debt relief" company upfront.