Debt Payoff Simulator
Visualize your path to freedom. Compare the Snowball and Avalanche methods to see which strategy will get you out of debt faster and save you the most money.
Your Debts
❄ Snowball Method
🚀 Avalanche Method
Choosing Your Path to Financial Freedom
Being in debt can feel overwhelming, like being lost in a blizzard. But there are two proven strategies to find your way out: the Debt Snowball and the Debt Avalanche. Each offers a clear path to financial freedom, but they cater to different psychological and financial priorities. Our Debt Strategy Simulator is designed to run the numbers on your specific debts, showing you a side-by-side comparison of these two powerful methods so you can choose the path that's right for you.
The **Debt Snowball** method, popularized by Dave Ramsey, is about building momentum. You focus all your extra payments on the debt with the smallest balance first, while making minimum payments on the others. Once that smallest debt is gone, you roll its payment into the extra payment for the next-smallest debt. This creates quick, motivating wins that build confidence and keep you on track. It's a powerful psychological tool.
The **Debt Avalanche** method is the mathematician's choice. You focus all your extra payments on the debt with the highest interest rate first. This approach is the most financially efficient, saving you the most money on interest over the long run and often getting you out of debt slightly faster. While the initial wins may feel slower, the long-term financial savings can be significant. Our calculator will show you exactly how much you could save. By seeing the debt-free date and the total interest paid for both scenarios, you can make a fully informed decision that balances psychological motivation with financial optimization.