What is the debt snowball method?

The debt snowball method pays off debts from smallest balance to largest, regardless of interest rate. You make minimum payments on all debts except the smallest, which gets extra payments. When it's paid off, you roll that payment to the next smallest debt. This method provides psychological wins that keep you motivated.

What is the debt avalanche method?

The debt avalanche method pays off debts from highest interest rate to lowest. You make minimum payments on all debts except the one with the highest rate, which gets extra payments. This method saves the most money on interest over time but may take longer to see progress.

Which is better: debt snowball or avalanche?

Mathematically, the avalanche method saves more money on interest. However, the snowball method's quick wins help many people stay motivated. The best method is the one you'll stick with. If you need motivation, try snowball. If you're disciplined and want to minimize interest, try avalanche.

What is debt consolidation?

Debt consolidation combines multiple debts into a single loan with one monthly payment, ideally at a lower interest rate. Options include personal loans, balance transfer cards, and home equity loans (HELOC). It can simplify payments and potentially save money on interest.

From Chapter 7: "Debt Elimination Strategies"

Debt Payoff Calculator

Compare debt strategies, analyze consolidation options, and find the fastest path to debt freedom. Calculate your debt-free date and total interest savings using proven elimination methods.

3 Analysis Modes

$18K Average Interest Saved

3.2 Years Faster on Average

Enter Your Debts & Strategy

Add your debts and choose between snowball or avalanche method

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Debt Elimination Strategy

Choose Your Strategy Snowball builds momentum with quick wins, Avalanche saves the most money

Debt Snowball Method

Pay minimum payments on all debts, then put all extra money toward the smallest balance first. This method provides psychological wins and builds momentum.

Pros: Quick victories, builds motivation, easier to stick with

Cons: May pay more interest over time

Strategy Comparison

Compare snowball vs avalanche methods side-by-side to find the best approach for your situation

Your Debts

Debt Name	Balance ($)	Min Payment ($)	Interest Rate (%)	Action

Debt Snowball

Pay smallest balances first for psychological wins

Debt Avalanche

Pay highest interest rates first for maximum savings

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Strategy Comparison Results

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Debt Snowball

Time to Debt Free 0 months

Total Interest $0

Total Paid $0

Debt Avalanche

Time to Debt Free 0 months

Total Interest $0

Total Paid $0

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Payoff Timeline

Detailed Comparison Table

Strategy	Time to Debt Free	Total Interest Paid	Total Amount Paid	Savings vs Worst

Strategy Recommendation

Master Debt Elimination Strategies

This calculator shows you the numbers, but The Real Money Guide teaches you the psychology and strategies behind successful debt elimination that actually works.

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