Complete Debt Payoff Planner
Compare debt payoff strategies, analyze consolidation options, and get a gamified timeline to debt freedom.
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Complete Debt Payoff Planner
Compare avalanche vs snowball strategies, analyze consolidation options, and get a gamified timeline to debt freedom.
Your Debts
SUMMARY
Understanding Debt Payoff Strategies
💰 Avalanche
Pay off highest interest rate debts first. Saves the most money mathematically.
⭐ Snowball
Pay off smallest balance debts first. Provides early motivation and psychological wins.
🔗 Consolidation
Combine multiple debts into one loan. Simplifies payments and may reduce interest.
Frequently Asked Questions
What's the difference between avalanche and snowball?
Avalanche pays highest interest debts first (saves most money). Snowball pays smallest balance debts first (faster psychological wins).
Which debt payoff method is better?
Avalanche saves more money (typically $500-$2,000). Snowball provides faster motivation (first debt paid 3-6 months sooner). Best method: The one you'll stick with!
Should I consolidate my debt?
Yes if: You can get lower rate AND won't rack up new debt. No if: Fees > savings, or you lack discipline to not use cards again.
How much should I pay extra each month?
Any extra helps! Even $25/mo makes a difference. Goal: 20% extra. Aggressive: 50-100% extra. Use the "What If" section in the Challenge tab to see impact.
Will consolidation hurt my credit score?
Short-term: Small dip from hard inquiry. Long-term: Usually improves score (lower utilization, on-time payments). Average improvement: 36 points after 6 months.
Can I change strategies midway?
Yes! Switch from snowball to avalanche (or vice versa) anytime. Some people use snowball for first payoff, then switch to avalanche.
What if I can't make extra payments right now?
Start with minimum payments only. Use this tool to see future impact when you CAN add extra. Even $10-25/mo makes a difference once you can afford it.
Key Financial Terms
Understand the essential concepts behind this calculator
Debt Avalanche Method
A debt payoff strategy where you pay minimums on all debts, then put extra money toward the highest interest rate debt first.
Debt Consolidation
The process of combining multiple debts into a single loan with a lower interest rate to simplify payments and reduce costs.
Debt Snowball Method
A debt payoff strategy where you pay minimums on all debts, then focus extra payments on the smallest balance first for psychological wins.
Frequently Asked Questions
Common questions about the Complete Debt Payoff Planner
🎓 Student Loan Data Sources
• Undergraduate Direct Loans: 6.53%
• Graduate Direct Unsubsidized: 8.08%
• Direct PLUS Loans: 9.08%
→ Source: Federal Student Aid - Interest Rates
• SAVE Plan: 5% of discretionary income (undergraduate), 10% (graduate), 0% below 225% FPL
• PAYE Plan: 10% of discretionary income, capped at 10-year standard
• IBR Plan: 10-15% of discretionary income based on loan date
• ICR Plan: Lesser of 20% discretionary income or fixed 12-year payment
→ Source: Federal Student Aid - Income-Driven Repayment Plans
• Requires 120 qualifying monthly payments (10 years)
• Must work full-time for qualifying employer (government/non-profit)
• Remaining balance forgiven tax-free after 120 payments
→ Source: Federal Student Aid - PSLF Program
• Bachelor's degree borrowers: $28,950 average debt
• Total outstanding student loan debt (U.S.): $1.75 trillion
• Average monthly payment: $200-$299 for most borrowers
→ Source: Education Data Initiative - Student Loan Debt Statistics
• Private refinancing rates: 4.5% - 9.5% (varies by credit, term)
• Note: Refinancing federal loans means losing federal protections (IDR, PSLF, forbearance)
→ Source: CFPB - Student Loan Refinancing
Important: Student loan rules change frequently. Always verify current program requirements at StudentAid.gov before making decisions.
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⚠️ Important Disclaimer
This Complete Debt Payoff Planner provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.