Debt Snowball Calculator
Dave Ramsey's Method vs. Debt Avalanche Strategy
Debt Snowball vs. Debt Avalanche
🎯 Debt Snowball Method
Strategy: Pay off smallest debts first regardless of interest rate
- Focus on smallest balance first
- Make minimum payments on all other debts
- Roll payments from paid-off debts to next smallest
- Popularized by Dave Ramsey
Pros: Quick wins, psychological motivation, simple to follow
Cons: May pay more interest overall
âš¡ Debt Avalanche Method
Strategy: Pay off highest interest rate debts first
- Focus on highest interest rate first
- Make minimum payments on all other debts
- Roll payments from paid-off debts to next highest rate
- Mathematically optimal approach
Pros: Saves money on interest, fastest payoff time
Cons: Slower progress on large balances, less motivation
How to Use the Debt Snowball Method
Step 1: List All Debts
Make a complete list of all your debts including credit cards, personal loans, student loans, car loans, and any other debts.
Step 2: Order by Balance
Arrange your debts from smallest balance to largest balance, regardless of interest rates.
Step 3: Make Minimum Payments
Continue making minimum payments on all debts to avoid late fees and negative credit impacts.
Step 4: Attack the Smallest Debt
Put all extra money toward paying off the smallest debt as quickly as possible.
Step 5: Celebrate and Roll Over
Once the smallest debt is paid off, celebrate your win! Then roll that payment amount into the next smallest debt.
Step 6: Repeat Until Debt-Free
Continue this process until all debts are paid off. Each paid-off debt increases your momentum!
📱 Mobile App Coming Soon
Get the official calcs.top mobile app for on-the-go debt tracking and calculations.