The Debt Snowball Method is a popular strategy for paying off multiple debts. It focuses on paying off the smallest debt first while making minimum payments on the others. Once the smallest debt is cleared, the money that was being used for that debt is redirected towards the next smallest debt, creating a “snowball” effect.
This Debt Repayment Snowball Calculator helps you estimate how long it will take to pay off your debts and how much interest you will pay using the snowball method.
To use the calculator:
- Enter each debt’s amount and interest rate – Include up to three debts, with their corresponding interest rates.
- Input your extra monthly payment – The amount you can contribute towards paying down your debts in addition to the minimum monthly payments.
Examples:
- Example 1: You have three debts:
- Debt 1: £5,000 at 15% interest
- Debt 2: £3,000 at 12% interest
- Debt 3: £1,500 at 5% interest
- You can afford an extra payment of £200 each month.
- The calculator will show how many months it will take to pay off all debts and the total interest paid.
- Example 2: You have two debts:
- Debt 1: £7,000 at 10% interest
- Debt 2: £2,500 at 20% interest
- You can make an extra payment of £150 each month.
- The calculator will display the debt-free timeframe and total interest paid.
UK Debt Repayment Snowball Calculator
Important Information
- Motivational Method: The debt snowball method focuses on small wins to build motivation, but it may not always minimise total interest paid. Compare it with other strategies to see what fits your situation.
- Regular Review: Regularly review your debts and financial situation to ensure the snowball method remains the best approach for you.
This Debt Repayment Snowball Calculator provides users with a practical way to tackle multiple debts and track their progress towards becoming debt-free.