Debt · UK
Debt Payoff Calculator
Plan your way out of debt with the snowball or avalanche method. Add your cards and loans, choose how much extra you can pay, and see how soon you could be debt-free and how much interest you save.
For non-priority debts like cards, loans and catalogues. Deal with rent, mortgage, council tax, energy and tax arrears first. An estimate to help you plan, not debt advice.
- Debt-free in
- 1 yr 8 mos
- Total interest
- £798
- Total you repay
- £4,798
- First debt cleared
- Credit card, month 20
How snowball and avalanche work
Both methods start the same way: you pay the minimum on every debt so none falls behind. Then you take whatever you can afford on top, the extra above, and throw it all at one debt until it is gone. When that debt clears, the money you were paying on it rolls onto the next one, so each cleared debt speeds up the next. The only difference is which debt you attack first.
The snowball method goes after the smallest balance first. You see a debt disappear quickly, which can be the push that keeps you going. The avalanche method goes after the highest APR first. APR (annual percentage rate) is the yearly cost of the debt, so clearing the priciest one first means less interest overall and, usually, a faster finish. Compare both above and pick the one you can stick to.
Common questions
What is the difference between the snowball and avalanche methods?
Both pay the minimum on every debt, then put any spare money at one debt until it clears. The snowball method targets the smallest balance first, for quick wins that keep you motivated. The avalanche method targets the highest APR first, which clears your most expensive debt soonest.
Which method is better, and which saves the most money?
The avalanche method always pays the least interest and is never slower, because it starves your most expensive debt first. The snowball method usually costs a little more but gives you a cleared debt sooner, which some people find easier to stick to. The best method is the one you will actually keep going with.
Do I keep paying the minimum on my other debts?
Yes. You pay the minimum on every debt every month, then put all your spare money at the one you are focusing on. When that debt clears, its payment rolls onto the next one, so the amount going at your debts stays the same and clears them faster over time.
What is APR?
APR (annual percentage rate) is the yearly cost of borrowing, shown as a percentage of what you owe. A higher APR means the debt grows faster, which is why the avalanche method clears high-APR debts first.
Will paying off debt this way affect my credit score?
Clearing balances and keeping up with payments generally helps your credit over time. Neither method harms your score by itself. What matters is making every payment on time and bringing balances down.
Should I pay off debt or build up savings first?
A small emergency fund can stop you going further into debt when something unexpected comes up, so many people build a modest buffer first, then focus on clearing expensive debt. There is no single right answer, and it depends on your situation.
Does this work with 0% balance-transfer or buy-now-pay-later debt?
You can include them. A 0% debt has no interest in the model, so the avalanche method leaves it until last. In real life those deals expire, so keep an eye on when 0% periods end, as the rate can jump sharply afterwards.
What about rent, council tax or other priority debts?
Deal with those first, whatever their interest rate. Falling behind on rent, mortgage, council tax, energy or tax can lead to eviction, court action or losing essential services. This calculator is for non-priority debts like credit cards, loans and catalogues. If you are behind on priority bills, get free advice now.
About this calculator
Interest is worked out monthly from each debt's APR, using the effective monthly rate, and your spare cash is applied to one debt at a time in the order each method chooses. Figures are estimates: real lenders charge interest daily and minimum payments usually fall as the balance drops, so treat the numbers as a guide. This is a planning tool for non-priority unsecured debts, not debt advice. We checked our approach against MoneyHelper, Citizens Advice, StepChange and the FCA.
If you are struggling, free and impartial debt help is available from MoneyHelper, StepChange and Citizens Advice. Deal with priority debts such as rent, mortgage, council tax and energy first, whatever their interest rate.