Planning guide
How to build a debt repayment plan
A useful repayment plan starts with the numbers you already have—not a target date you hope will be true. Gather each balance, APR, required payment, and the total amount you can consistently devote to debt each month. Then choose the payoff order.
1. Build a complete debt inventory
For every debt you plan to accelerate, record the current balance, APR, minimum payment, and a clear name. Use current statements or lender data rather than estimates where possible.
2. Set a monthly debt budget you can sustain
Add the required minimum payments, then decide how much extra money can realistically remain in the plan month after month. DebtSnowball.org keeps this total budget fixed when comparing Snowball and Avalanche so payoff order is the variable being tested.
Recommended
3. Snowball: smallest balance first
We recommend Snowball for most people because it is structured around earlier account closures and visible progress. Keep minimums covered and direct the remaining budget to the smallest active balance.
Benchmark
Avalanche: highest APR first
Avalanche generally minimizes modeled interest under the same monthly budget. Use it as the accounting benchmark so you can see the price of choosing earlier account milestones.
4. Check for debts that should not be treated as ordinary rows
Federal student loans, tax debt, collection accounts, bankruptcy-related obligations, and secured debt can involve program, legal, or collateral consequences. Resolve those rules before applying a generic smallest-balance payoff order.
See special-case guidance →5. Recalculate when the plan changes
Rates, minimums, balances, and the amount you can pay can all change. A payoff date is an estimate based on the current inputs, not a promise. Re-run the model after a material change rather than treating the original projection as fixed.
Build the plan
Use one budget. Compare both payoff orders.
The calculator shows your modeled payoff date, interest, and timeline, then lets you save, share, or export the plan.