Debt Payoff Planner

A plan beats willpower Paying off debt without a plan feels like a treadmill. A structured strategy tells you exactly which debt to attack first and when you'll be free. This matters because debt is expensive: the **average credit card APR sat around 21%** in 2026, and the **average borrower carries about $39,000** in student loans. The two proven strategies are the **avalanche** and the **snowball**.

The shared foundation Both methods work the same way at the core: pay the **minimum on every debt** to stay current, then throw every spare dollar at one target. When that debt dies, you roll its whole payment onto the next — a "rolling payment" that grows as each balance disappears. The only difference is the order.

Avalanche: cheapest and fastest The avalanche targets the **highest interest rate first**, regardless of balance. It's mathematically optimal because high-rate debt is the most expensive to carry, so killing it first stops the most interest. With a 22% card and a 5% student loan, you crush the card first even if the loan is bigger. Best for people motivated by efficiency.

Snowball: momentum and wins The snowball targets the **smallest balance first**. It's not optimal on paper, but knocking out a debt quickly delivers an early win that keeps you going. Personal finance is as much behavior as math, and many people quit the avalanche because the biggest debt takes ages. If you need motivation, the snowball's small extra interest cost can be worth it.

How to choose If the interest difference between the two is small, take the snowball — the best plan is the one you finish. If a big high-rate debt sits next to a small low-rate one, the avalanche can save real money. This tool shows both the **interest saved** and **months saved** so you can decide with facts.

Accelerators and the finish line Every extra dollar above the minimums goes straight to principal. A **0% balance-transfer card** (watch the 3–5% fee) or a consolidation loan can lower your rate. When you're debt-free, redirect that entire payment into savings and investing — the engine that paid off debt now builds wealth.