How Debt Elimination Strategies Work

1

Debt Snowball

Pay minimums on all debts, then focus extra payments on the smallest balance first. Builds momentum through quick wins and psychological victories.

2

Debt Avalanche

Pay minimums on all debts, then focus extra payments on the highest interest rate first. Saves the most money overall by minimizing interest payments.

3

Proportional Payment

Distribute extra payments proportionally across all debts based on their balances. Balanced approach where all debts reach zero together.

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Payoff Strategy Comparison

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How It Works

Debt Snowball

Pay minimums on all debts, then focus extra payments on the smallest balance first. Builds momentum through quick wins.

Debt Avalanche

Pay minimums on all debts, then focus extra payments on the highest interest rate first. Saves the most money overall.

Proportional Payment

Distribute extra payments proportionally across all debts based on their balances. Balanced approach to debt reduction.

Important: Debt Planner is an educational tool only. We are not licensed financial advisors, credit counselors, or debt management professionals. All calculations are for educational purposes. Please consult qualified financial professionals before making significant financial decisions.

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