Debt Payoff Planner
Avalanche · Snowball · Month-by-month plan

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.

—debt-free date
—total interest
—vs minimum payments

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.

$ /mo extra

Strategy

🏔 Avalanche

Pay highest interest rate first — saves the most money overall

⛄ Snowball

Pay smallest balance first — quickest wins, better motivation

Your payoff plan

Debt-free date
—
—
Total debt
—
Total interest
—
Monthly payment
—
Interest saved vs min
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Payoff order

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.

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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 vs ⛄ Snowball

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.

💳 Canadian credit card rates

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.

🔄 Balance transfer strategy

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.

🏦 Debt consolidation options

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.

Avalanche vs snowball — the math vs the psychology

There are two well-known approaches to paying off multiple debts, and they optimize for different things. Understanding the actual trade-off — not just the names — helps you pick the one you'll actually stick with.

The avalanche method — mathematically optimal

Avalanche means paying minimums on everything except your highest-interest debt, which gets every extra dollar until it's gone, then moving to the next-highest rate. This minimizes total interest paid across all your debts — it's the mathematically correct strategy if your only goal is paying the least amount of interest over time. For Canadians carrying both credit card debt (often 20%+ APR) and lower-rate debt like a car loan or line of credit, avalanche means attacking the credit card first regardless of balance size.

The snowball method — optimized for motivation

Snowball means paying minimums on everything except your smallest balance, which gets all the extra money regardless of its interest rate. Once that smallest debt is paid off, you roll its payment into the next-smallest. This pays more total interest than avalanche in almost every case, but it produces faster psychological wins — eliminating a full account, even a small one, provides motivation that many people find keeps them committed to the plan longer than the slower-feeling avalanche method.

Which one should you actually use?

If the interest rate gap between your debts is large — a 22% credit card vs a 6% car loan — the avalanche method's interest savings are substantial enough that it's usually worth pushing through the slower-feeling early months. If your debts have similar interest rates, the difference between methods is small, and choosing whichever keeps you motivated to actually follow through matters more than the math. The calculator above lets you compare both side by side with your actual balances and rates so you can see the real dollar difference for your specific situation rather than relying on generic advice.

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