Debt Reduction
Debt Snowball & Avalanche
Two proven methods to eliminate consumer debt. The Snowball targets the smallest balance first for quick psychological wins. The Avalanche targets the highest interest rate first to minimise total interest paid. See which works best for your situation.
01
List all debts smallest to largest balance02
Pay minimums on everything03
Throw every extra dollar at the smallest debt04
When it's gone, roll that payment to the nextExtra Monthly Payment
How much extra can you throw at your debts each month, on top of all minimums?
$$200/mo
Total minimums
$970/mo
Total commitment
$1,170/mo
Your Debts (3)
BALANCE
$
RATE %
%
MIN/MO
$
BALANCE
$
RATE %
%
MIN/MO
$
BALANCE
$
RATE %
%
MIN/MO
$
2 yrs 2 mo
Months Saved vs Min
$5,922
Interest Saved vs Min
4 yrs 1 mo
Debt-Free In
$45,500
Total Debt
Method Comparison
Snowball
4 yrs 1 mo
to debt-free
$11,271
total interest
Avalanche
4 yrs 1 mo
to debt-free
$11,271
total interest
Minimums Only
6 yrs 3 mo
to debt-free
$17,193
total interest
Snowball Payoff Order
1
Credit Card
2 yrs 3 mo
-4 yrs faster
$8,500
2
Personal Loan
3 yrs 6 mo
-1 yr 11 mo faster
$15,000
3
Car Loan
4 yrs 1 mo
-1 yr faster
$22,000
Months to Pay Off — All Methods Compared
Snowball
Avalanche
Minimums Only
IAW Disclaimer: This calculator is for educational modelling purposes only and does not constitute financial advice. Results assume consistent payments and fixed interest rates. Consult a licensed Australian financial adviser for personalised guidance.