You will pay off all your debts in 48 months (May, 2030) which will cost you $8,978.64 in total interest payments. If you follow the debt avalanche method, you can payoff all your debts in 36 months (May, 2029) and save $616.61 in interest payments.

What is the debt avalanche method?

The debt avalanche method is a debt reduction strategy to pay off all your debts starting with the one with the highest interest rate. Unlike the debt snowball strategy which focuses on debt with the smallest amount, the debt avalanche emphasizes interest rate.

How does the debt avalanche method work?

The debt avalanche method states that you should focus on paying off the debt with the highest interest rate first before paying off other debts regardless of the size of each debt. With the debt avalanche method, you will make minimum payments to all your debt except the one with the highest interest rate. The money you save from minimum payments goes toward making extra payments to the debt with the highest interest rate. As soon as the debt with the highest interest rate is fully paid off, you move on to the debt with the second highest interest rate and repeat the process until all your debts are paid off.

How does the debt avalanche calculator work?

The debt avalanche calculator will calculate the total interest you pay and when your debt will be paid off with regular payments. The debt avalanche calculator will show you how much interest you can save and how much faster you can pay off your debt with the avalanche method. You also have the option to increase your monthly budget to pay off your debt even earlier if you can afford it. The debt avalanche amortization schedule shows you the monthly payments you will be making using the debt avalanche method.