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💳 Debt Payoff Planner

Avalanche vs Snowball — see which method saves you more money and gets you debt-free faster. From Micro Moves, Macro Gains, Chapter 4.

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$Optional — accelerates payoff

Recommended Method

avalanche Method

Pay highest interest rate first — mathematically optimal.

You save

$0

vs the other method

🔥 Avalanche Method

Best

Highest interest rate first

Total Interest$15,789.19
Payoff Time10y 10m
Total Cost$52,789.19

⛄ Snowball Method

Smallest balance first

Total Interest$15,789.19
Payoff Time10y 10m
Total Cost$52,789.19

💡 Avalanche vs Snowball — Which Should You Use?

🔥 Avalanche (mathematically optimal)

Pay the debt with the highest interest rate first. You pay less total interest. Best if you're motivated by seeing big numbers drop and want to optimize every dollar.

⛄ Snowball (psychologically optimal)

Pay the smallest balance first. You pay off debts faster, getting wins early. Best if motivation is your challenge — research shows people stick to snowball longer.

Bottom line: the best method is the one you'll actually stick with. Both beat minimum-only payments by a massive margin.

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Micro Moves, Macro Gains covers the complete system: budgeting, debt payoff sequencing, investing while in debt, and building wealth on any income.

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