Enter your debts and see which payoff strategy saves you the most money.
Avalanche
Highest rate first
3 yrs 9 mo
to pay off
$6,401
total interest paid
Snowball
Lowest balance first
3 yrs 9 mo
to pay off
$6,401
total interest paid
saved in interest compared to minimum payments only, and debt cleared 2 yrs 6 mo sooner.
The honest answer: it depends on how you're wired.
Highest interest rate first
Pay minimums on all debts, then throw every extra dollar at the debt with the highest interest rate. Once it's gone, roll that payment to the next-highest rate.
Saves the most total interest. Best for people who are motivated by numbers and can stay disciplined even when progress feels slow.
Smallest balance first
Pay minimums on all debts, then throw every extra dollar at the smallest balance. Once it's cleared, roll that payment to the next smallest.
Gets you wins faster. The psychological momentum of eliminating accounts keeps many people on track when avalanche feels abstract.
Avalanche saves more money. Snowball wins on psychology.
The best method is the one you'll stick to. Start with whichever keeps you motivated.
Even small amounts compress your timeline significantly. $100/fortnight extra on a $10,000 personal loan can cut 18+ months.
0% intro offers (12–24 months) let you pay down principal without accruing new interest. Transfer fees are usually 1–3% — worth it if the rate is high.
If your debt rate exceeds 7%, temporarily redirecting salary sacrifice to debt repayment is often the mathematically better move.
Unused gym equipment, electronics, furniture. Even $500–2,000 applied as a lump sum payment saves months of interest.
Set up a direct debit for your minimum plus a fixed extra amount the day after payday. Remove the temptation to spend it.
Avalanche method (highest rate first) plus any extra payment above minimums. Even $100/fortnight extra cuts years off.
If debt rate exceeds 7%, pay it off first. Below 7%, investing in broad ETFs historically returns more over time.
Often yes — moving 19.99% credit card debt to 0% for 12–24 months and continuing to pay reduces principal faster.
HECS is repaid via tax at low rates. Prioritise credit cards and personal loans over HECS every time.