REPAYLY Logo

REPAYLY

Master your money and REPAY earLY.

Illustrative Financial Modelling • Not Regulated Advice

Debt Free DateJul 2028
Interest Saved£2,665
Your Debts
Add all your outstanding balances, interest rates, and minimum payments.
£
%
£
£
%
£
£
%
£
Strategy & Budget
£
Bonus Payments
Illustrative StrategyThis calculator provides illustrative projections only. Actual interest savings and payoff dates depend on individual lender terms and your continued ability to meet payments. This is not an offer of credit.
Debt Free DateJuly 202827 Months from now
Total Interest Savings£2,665
Optimized for avalanche
Repayment Trajectory
Total Balance
Strategic Allocation (Month 1)
How your £800 budget is mathematically distributed.

Credit Card A

£150

Modelled Payment

Personal Loan

£280

Modelled Payment

Overdraft

Strategy Priority

£370

Modelled Payment

Note: These allocations are purely illustrative results of the avalanche model. You should always ensure you meet the minimum payment obligations of your lenders first.

Individual Payoff Timeline
When each specific debt will be fully cleared using this strategy.

Credit Card A

Cleared in Month 15

Jul 2027

Personal Loan

Cleared in Month 27

Jul 2028

Overdraft

Cleared in Month 5

Sept 2026

Advertisement

Snowball vs Avalanche

Choosing the right strategy for your financial journey.

•Read In-Depth Guide

When tackling multiple debts, such as credit cards, personal loans, or overdrafts, choosing a structured method can significantly impact your journey to financial freedom. Two of the most popular strategies are the Debt Snowball and the Debt Avalanche. While both aim for the same result—becoming debt-free—they take different approaches to how you prioritise your payments.

The Debt Snowball

The Debt Snowball method focuses on psychological momentum. With this strategy, you list your debts from smallest balance to largest balance, regardless of interest rates. You pay the minimum on everything except the smallest debt, to which you direct any extra funds. Once that smallest debt is cleared, you "roll" that payment into the next smallest balance.

The primary advantage of the Snowball method is the "quick win." Clearing a small balance early provides a powerful sense of accomplishment, which can provide the motivation needed to stay on track for the long term. For many, the behavioural boost of seeing a debt disappear completely outweighs the mathematical cost.

The Debt Avalanche

The Debt Avalanche method is built on mathematical efficiency. Instead of looking at balances, you prioritise your debts based on their interest rates. You list your debts from the highest interest rate to the lowest, directing extra payments toward the debt that is costing you the most in interest every month.

By targeting high-interest debt first, you minimise the total amount of interest paid over the life of your debts. Mathematically, the Avalanche method is usually the fastest and cheapest way to clear debt. However, if your highest-interest debt is also your largest balance, it may take a long time to see that first "win," which can be challenging for some.

Which Strategy Should You Choose?

The "best" strategy is the one you can stick to until the end. If you are motivated by numbers and want to pay as little interest as possible, the Avalanche method may be for you. If you find yourself losing steam and need frequent milestones to keep going, the Snowball method's psychological benefits are significant.

Important Note: This tool and content are for illustrative purposes only. Always ensure you are meeting the minimum payments on all priority debts. If you are struggling with debt, we recommend seeking free, professional advice from charities such as StepChange or MoneyHelper.