Debt Payoff Planner: Snowball vs Avalanche (India)

How to Use the Debt Payoff Planner

1. List every debt: credit cards, personal loans, car loans, consumer durable EMIs and loans from apps. Take the outstanding balance, interest rate and minimum monthly payment from your latest statement.
2. Add an extra monthly amount you can put towards your debts, on top of the minimums. Even ₹1,000–2,000 a month can save you months of payments.
3. Compare the methods. The planner shows when you'll be debt-free and how much interest you'll pay with the avalanche method, the snowball method, and with minimum payments only.
4. Follow your payoff order. Pay the minimum on everything and put every extra rupee on the first debt in the list. When it's cleared, move its payment to the next one.

Avalanche vs Snowball: What's the Difference?

In India the two methods often give the same order, because credit cards usually have both the highest rate (36–42% a year) and a smaller balance than personal or car loans. When they differ, the planner shows exactly how much more the snowball method costs, so you can decide whether the quick wins are worth it. For a deeper look, read snowball vs avalanche: which works best in India.

How the Planner Works

The planner simulates your debts month by month. Each month, it adds interest to every balance, pays the minimum on each debt, then puts your extra amount on the debt your chosen method picks first. When a debt is cleared, its minimum payment isn't spent elsewhere – it rolls over to the next debt. This "rollover" is what makes both methods so much faster than paying only the minimums.

It's an estimate: it assumes your interest rates stay the same, you don't borrow more, and interest is charged monthly on the outstanding balance. Real credit card interest is calculated daily and can be slightly higher.

Tips to Get Out of Debt Faster

• Stop adding to the pile. Pause credit card spending until the balance is cleared, and avoid "buy now, pay later" offers.
• Never pay only the minimum due on a credit card. Minimum due is usually around 5% of the bill, and at 3–3.5% interest a month, most of it goes to interest.
• Consider a cheaper loan for card debt. A personal loan at 12–16% to clear a card at 42% can cut your interest sharply – but only if you stop using the card.
• Use bonuses and windfalls. Put part of your annual bonus, tax refund or gifts towards the first debt in your order.
• Prepaying a floating-rate loan costs nothing extra. RBI rules don't allow banks to charge individuals a penalty for prepaying floating-rate loans. See how much you'd save with our Home Loan Prepayment Calculator.

Questions People Actually Ask Us

Where are my numbers saved? Only in your own browser, on this device. Nothing is sent to us or anyone else. Use "Clear all" to delete them.

Should I include my home loan? You can, but most people leave it out. Home loans have low rates and tax benefits, so it usually makes sense to clear costlier debts first.

Why does it warn that a minimum payment doesn't cover the interest? If the minimum is lower than the interest charged each month, the balance grows even though you're paying. You need to pay more than the amount shown to make progress on that debt.

Should I pay off debt or invest? Clear high-interest debt like credit cards and personal loans first – no investment reliably beats 14–42% a year. Keep a small emergency fund while you do it, so a surprise expense doesn't put you back on the card.

Struggling with a credit card balance? Read our step-by-step plan to get out of credit card debt, then plan your monthly spending with the Budget Planner.

Disclaimer: This planner is for educational purposes only. Results are estimates and depend on your lender's actual terms. It isn't financial advice. See our full Disclaimer.