Debt Payoff Calculator
If you're juggling a credit card balance, a personal loan, and an overdraft, this calculator builds a clear plan to clear them all. List each debt with its balance, APR, and minimum payment, set how much extra you can afford each month, and choose either the avalanche method (highest APR first) or snowball (smallest balance first) — the model returns the total months to debt-free.
How is this calculated?
Each month, every debt accrues interest at its APR/12 and receives at least its minimum payment. The extra monthly amount is directed at the priority debt — highest APR for avalanche, smallest balance for snowball. As each debt clears, its minimum payment rolls into the extra pot, accelerating the next debt (the snowball effect). The model assumes payments are made on time and minimums don’t recalculate downward as balances fall, which is conservative but realistic.
Frequently Asked Questions
Avalanche or snowball — which should I pick?
Avalanche minimises total interest because you attack the most expensive debt first. Snowball maximises motivation by clearing the smallest debt fastest. If the interest difference between your debts is small, the behavioural advantage of snowball often outweighs the optimisation of avalanche.
Should I consolidate everything into one loan?
Consolidation can simplify life and lower the average rate, but only if the new loan APR is genuinely below your current weighted average — and only if you cut up the credit cards afterwards. Many people consolidate, then re-rack the cards and end up worse off.
What if I can't afford the minimums?
Stop and get free help before the situation deteriorates. StepChange, National Debtline, and Citizens Advice provide free, regulated debt advice and can negotiate with creditors on your behalf. Avoid fee-charging debt management firms — the same outcomes are available for free.
Will a debt management plan affect my credit file?
Yes. A formal DMP, IVA, or bankruptcy will appear on your credit file for six years and significantly limit future borrowing. The trade-off can still be the right call if the alternative is missed payments and CCJs piling up. Free advice services will help you weigh the options.
Last updated: May 2026 · Rates sourced from HMRC