Snowball or avalanche?
Both methods work the same way. You pay the minimum on every debt, then put any spare money on one target debt. When that debt is cleared, its payment rolls on to the next one. The only difference is the order.
- Avalanche: target the debt with the highest interest rate (APR) first. This usually costs the least interest overall.
- Snowball: target the smallest balance first. You clear whole debts sooner, which can help you stay motivated.
If your smallest debt also has the highest rate, both methods give the same answer. The calculator tells you when that happens.
How to use the calculator
- Add each debt with its balance, APR and minimum monthly payment. You'll find these on your latest statement or in your banking app.
- Enter the extra you can pay each month on top of all your minimums. Even £25 makes a difference.
- Compare the two plans: your debt-free date, the total interest and the order your debts are cleared.
Things to know
- The results are estimates. Interest is worked out as APR ÷ 12 each month, and real card interest is worked out daily.
- 0% deals end. If a balance transfer or 0% purchase deal finishes before you clear it, the rate jumps. Plan to clear it first, or change the APR in the calculator to see the effect.
- Stopping new borrowing matters as much as the method you choose.
Struggling with debt?
If you're behind on bills or can't cover your minimum payments, free and confidential help is available. MoneyHelper, StepChange, National Debtline and Citizens Advice all offer free debt advice. Be wary of companies that charge for help you can get free.