What is the Avalanche method of debt repayment?

The Avalanche method focuses extra payments on the loan with the highest interest rate first, while paying minimums on all others. This saves the most money in interest over time.

What is the Snowball method?

The Snowball method focuses extra payments on the smallest balance first. Once that loan is paid off, its EMI is rolled into the next smallest loan. This gives quick wins and motivation.

Which method is better — Avalanche or Snowball?

Avalanche saves more money mathematically. Snowball gives faster emotional wins. If your highest-rate loan is also a large balance, Snowball may keep you motivated. Use this planner to compare both.

Debt Payoff Planner — Pay Off Multiple Loans Faster

What Is a Debt Payoff Planner?

A debt payoff planner helps you create a structured repayment strategy when you have multiple loans running simultaneously — personal loans, credit cards, home loans, car loans, or education loans. Instead of paying minimums everywhere, it directs your extra money to the right loan first.

Avalanche vs Snowball: Which Strategy Works?

Avalanche Method (Highest Interest First)

You pay minimum EMIs on all loans and direct extra payments to the loan with the highest interest rate. Once that's cleared, you move to the next highest rate. This method saves the most money in total interest.

Snowball Method (Smallest Balance First)

You target the smallest loan balance first, regardless of interest rate. Once paid off, you "snowball" that EMI into the next smallest loan. This gives you quick motivational wins.

Example: 3 Loans Totalling ₹8,50,000

Credit Card: ₹1,20,000 at 36% — minimum ₹6,000/month
Personal Loan: ₹3,30,000 at 14% — EMI ₹11,500/month
Car Loan: ₹4,00,000 at 9.5% — EMI ₹8,400/month

With an extra budget of ₹5,000/month using the Avalanche method, the credit card (36%) gets attacked first. You'd save approximately ₹45,000+ in interest compared to paying only minimums and finish 8 months earlier.

How to Use This Planner

Click "Add Loan" for each active loan or credit card balance.
Enter outstanding balance, interest rate, and minimum EMI for each.
Set your extra monthly budget — the amount over and above your minimum EMIs.
Choose Avalanche or Snowball and click "Calculate".
Compare results between both strategies to decide.

Why Planning Debt Payoff Matters

Avoid paying lakhs in unnecessary interest — high-rate debts compound aggressively
Get a clear timeline — know your exact debt-free date instead of guessing
Stay motivated — seeing loans disappear one by one keeps you on track
Free up cash flow — every paid-off loan frees money for the next

Related Tools & Guides

EMI Calculator — Calculate EMI for any loan
Debt-to-Income Calculator — Check your debt load ratio
How to Prioritize Multiple Loans
EMI More Than Income — What to Do
Early Signs of a Debt Problem
📘 Complete Guide: Managing Multiple EMIs in India

Debt Payoff Planner

Your Loans

Extra Monthly Budget for Debt

Strategy

📋 Payoff Order

🎉 Savings vs Minimum Payments Only

📊 Interpretation