Snowball vs avalanche
- Avalanche — pay minimums everywhere, put extra toward the highest APR debt. Mathematically optimal: lowest total interest, fastest payoff date.
- Snowball — pay extra toward the smallest balance. Costs a bit more interest but delivers quick wins that keep people motivated — the behavioral research says the snowball wins because people actually stick with it.
- The calculator runs both and shows the difference — usually small in total cost, big in psychology.
How to read the plan
- Payoff date — the month you're debt-free; total interest — what the debt actually cost you.
- Cashflow cascade — as each debt clears, its minimum payment rolls onto the next target (the snowball/avalanche "cascade").
- This is a simulation with fixed APR — rate changes, fees and missed payments shift the timeline.
This is a planning tool, not financial advice. For budgeting context see the Vacation Budget tool's savings logic.