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Debt Repayment Calculator

Help users plan debt repayment using the snowball method (smallest balance first) or avalanche method (highest interest first).

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Your Debts

Debt #1
Debt #2
Debt #3

Extra Payment

Any amount you can pay over your total minimum payments. This is the key to getting out of debt faster.

Summary

Total Debt Balance£15,000.00
Total Minimum Monthly Payment£400.00
Total Monthly Payment£500.00

Comparison

Snowball

2y 9m

Total Interest: £1,396.04

Avalanche

2y 9m

Total Interest: £1,396.04

Snowball method saves you £0.00

and gets you debt-free at the same time.

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Understanding Debt Repayment Strategies

The Debt Snowball Method

The snowball method is all about motivation. You focus on paying off the smallest debt balance first, regardless of the interest rate. By clearing a debt completely, you get a psychological boost and build momentum. Once the smallest debt is gone, you roll its entire payment (minimum plus any extra) onto the next-smallest debt, creating a 'snowball' of payments that grows as you knock out each balance.

The Debt Avalanche Method

The avalanche method is the most efficient from a financial standpoint. It prioritises paying off the debt with the highest interest rate first. By tackling your most expensive debt, you minimise the total amount of interest you pay. This approach will almost always save you more money and often gets you out of debt faster than the snowball method. For more detail, try our Loan Repayment Calculator.

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Which method is right for you?

Choosing between the two depends on your personality. If you need quick wins to stay motivated, the snowball method might be a better fit. If you are driven by numbers and want to save the most money possible, the avalanche method is the clear winner. This Calculator Site tool shows you the outcome of both, so you can make an informed decision.

The Power of Extra Payments

Regardless of the method you choose, the single most important factor in becoming debt-free is paying more than the minimum. Even a small extra amount each month dramatically reduces the total interest you'll pay and shortens your repayment timeline. A good Household Budget Calculator can help you find extra cash to accelerate your journey.

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Momentum

Snowball provides quick wins to keep you motivated.

Save £££

Avalanche minimises total interest paid over time.

Get Faster

Extra payments accelerate your debt-free date.

How to use this Calculator Site tool

List all your debts, including their balance, interest rate, and minimum payment. Then, enter any extra amount you can afford to pay each month. The

calculator
will instantly compare the Snowball and Avalanche methods, showing you the total interest paid and your debt-free date for each. Use this data to choose the best strategy for you.

Frequently Asked Questions

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