What is the debt snowball method?

The debt snowball method pays off debts from smallest to largest balance, regardless of interest rate. Quick wins keep you motivated. When one debt is paid, roll that payment to the next smallest debt.

Snowball vs avalanche method?

Snowball: Pay smallest balance first for psychological wins. Avalanche: Pay highest interest rate first to save most money. Snowball keeps people motivated; avalanche is mathematically optimal.

Which debt payoff method is better?

Avalanche saves more money in interest. Snowball provides motivation through quick wins. Choose avalanche if disciplined; choose snowball if you need motivational boosts. Both work if you stick with it.

How fast can I become debt free?

It depends on total debt, interest rates, and payment amount. Average Canadians take 2-5 years with focused effort. The more you can pay monthly, the faster you'll be debt-free.

Should I save or pay off debt?

Keep a small emergency fund ($1,000-2,000) first, then focus on high-interest debt (>6%). Once debt is under control, build 3-6 months expenses and invest for the future.

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Debt snowball calculator.

Compare the snowball and avalanche methods side-by-side. See which approach gets you debt-free faster, how much interest each saves, and which debt you pay off first.

Inputs

Your debts

Debt #1

Name

Balance

Interest rate

Min payment

Debt #2

Name

Balance

Interest rate

Min payment

Debt #3

Name

Balance

Interest rate

Min payment

Extra payment

Extra monthly amount

Extra amount applied above the minimum payments each month.

Your debt payoff plan

Fill the form and press Compare.

Debt snowball vs avalanche

Both methods eliminate debt, but they approach it differently. Choose the one that fits your personality and financial situation.

Debt snowball method

How it works: Pay the minimum on all debts except the smallest. Put all extra money toward the smallest debt. When paid off, roll that payment to the next smallest debt.

Advantages: Quick wins boost motivation, simple to understand, builds psychological momentum.

Best for: people who need motivational boosts, those with multiple small debts, and anyone who has failed at debt payoff before.

Debt avalanche method

How it works: Pay the minimum on all debts except the highest interest rate. Put all extra money toward the highest-rate debt. When paid off, roll that payment to the next highest rate.

Advantages: Saves the most money on interest, mathematically optimal, fastest debt elimination.

Best for: disciplined people, those with large high-interest debts, and people motivated by math, not emotions.

Keys to success

Track your progress monthly.
Celebrate small wins as each debt is cleared.
Avoid taking on new debt while paying off old.
Find extra money to accelerate payoff — even $50 a month helps.
Stay consistent — the plan only works if you stick with it.

Disclaimer

This calculator provides estimates based on consistent payments and no new debt. Actual results depend on interest rate changes, payment timing, and avoiding new debt. Consult a licensed financial advisor for personalized advice.