Debt payoff planner
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Your details
Two ways to order the same payments
Both pay every minimum each month and put the rest of your budget on one debt at a time. Only the order differs. This is arithmetic on your figures, not advice.
Snowball
Extra money goes to the smallest balance first.
- Debt-free in
- 1 yr 5 mo
- Total interest
- R8 098.66
- Total paid
- R49 598.66
- Store card month 4
- Credit card month 10
- Personal loan month 17
Avalanche
Extra money goes to the highest interest rate first.
- Debt-free in
- 1 yr 5 mo
- Total interest
- R7 374.20
- Total paid
- R48 874.20
- Personal loan month 13
- Store card month 14
- Credit card month 17
Difference in total interest between the two orders: R724.46. Difference in time: 0 mo.
- Assumes fixed interest rates charged monthly, no new spending, no fees and no change in minimum payments. Real statements will differ.
- If you cannot afford the minimum payments, you can ask a debt counsellor registered with the National Credit Regulator about debt review, or speak to your credit providers.
How the planner works
Each month, interest is added to each balance at its yearly rate divided by twelve. Every minimum is paid, and whatever is left of your budget goes to one debt: the smallest balance (snowball) or the highest rate (avalanche). When a debt is cleared, its payment rolls on to the next one.
Before you plan
- Check each balance and rate on a recent statement.
- Check that the rates and fees are within the legal caps with the loan cost and interest cap checker.
- If you are over-indebted, read debt review explained.
Frequently asked questions
What is the debt snowball method?
You pay the minimum on every debt and put any extra money on the debt with the smallest balance. When it is paid off, its payment moves to the next smallest.
What is the debt avalanche method?
You pay the minimum on every debt and put any extra money on the debt with the highest interest rate, then the next highest.
Which one should I use?
We do not recommend either. With the same budget, ordering by interest rate usually costs less interest; ordering by balance clears individual accounts sooner. The planner shows both with your figures so you can see the difference.
What if I cannot pay the minimums?
The planner tells you if your budget is below the total of the minimum payments. You can speak to your credit providers, or ask a debt counsellor registered with the National Credit Regulator about debt review.