Debt Payoff Calculator

History of Debt Repayment

Strategies for paying off multiple debts grew with the spread of consumer credit in the 20th century.

The Rise of Consumer Credit

Installment buying and credit cards expanded in the 20th century, letting households carry many debts at once — each with its own balance, interest, and minimum payment.

Personal-finance advice began to address how to order repayment.

Snowball vs Avalanche

The debt snowball, popularised by Dave Ramsey, prioritises the smallest balances first for psychological wins; the avalanche prioritises the highest interest to minimise total cost.

Both keep total monthly payment constant and redirect freed-up payments to the next debt.

Which Works Best

Mathematically the avalanche costs the least in interest, but the snowball's early wins improve adherence for many people.

This calculator simulates either method month by month to show your payoff order, time to debt-free, and total interest.