Debt Repayment Calculator

The snowball method focuses on paying off the smallest debt first while making minimum payments on all others. Once the smallest is paid, you roll that payment into the next smallest. It provides quick psychological wins to keep you motivated.

The avalanche method targets the debt with the highest interest rate first. Mathematically, this saves the most money on interest over time, but it may take longer to see your first debt fully paid off.

Avalanche saves more money on interest, but snowball gives quicker wins. Research shows people are more likely to stick with the snowball method. The best method is whichever you will actually follow through on.

Debt consolidation can help if you can get a lower interest rate than your current debts. However, be careful of extended terms that increase total interest paid, and avoid running up new debt on cleared credit cards.

Any extra helps. Even £50-£100 per month above minimums can dramatically reduce your repayment time. Use the calculator to see the impact of different extra payment amounts.

Generally, pay off high-interest debt (above 5-6%) before investing. However, keep a small emergency fund (£1,000) to avoid going into more debt. Always pay at least minimum payments on all debts.

You can include mortgage debt, but most financial advisors recommend treating mortgage debt separately due to its lower interest rate and tax implications. Focus on higher-rate consumer debt first.

If you cannot afford minimum payments, contact your creditors to negotiate reduced payments or contact free debt advice services like StepChange, Citizens Advice, or National Debtline.

Interest is calculated monthly on the remaining balance of each debt. As you pay down balances, less interest accrues, so more of each payment goes towards the principal.

Yes. Some people use a hybrid approach — paying off one or two small debts for quick wins, then switching to the avalanche method for the remaining larger debts.