The Complete Guide to Paying Off Debt & Building Wealth
Whether you owe $2,000 or $200,000, the right strategy can save you thousands in interest and years of payments. Then put that momentum to work with investing tools for portfolio growth and financial independence. This guide covers proven methods, real-number examples, and every calculator you need.
What Debt Payoff Means & Why It Matters
Debt payoff is the process of systematically eliminating what you owe by choosing a strategy, sticking to a payment plan, and tracking progress over time. It matters because carrying debt costs real money in interest, limits your options, and adds stress.
The good news: most people can pay off their debt faster than they think. Even small changes to how you allocate payments can save hundreds or thousands in interest.
Snowball vs Avalanche: Side-by-Side
The two most popular debt payoff strategies. Both work, but they appeal to different motivations.
| Snowball | Avalanche | |
|---|---|---|
| Order | Smallest balance first | Highest interest rate first |
| Strength | Quick wins keep you motivated | Saves the most on interest |
| Tradeoff | Slightly more total interest | First payoff may take longer |
| Best for | People who need motivation | People who want to minimize cost |
| Try it | Snowball Calculator | Avalanche Calculator |
When Each Method Works Best
Choose Snowball if you:
- Have many small debts and feel overwhelmed
- Need visible progress quickly to stay motivated
- Have similar interest rates across debts
- Have tried other methods and lost motivation
Choose Avalanche if you:
- Want to pay the least total interest
- Have one high-rate debt that dwarfs the others
- Are disciplined and motivated by numbers
- Can handle a longer wait for your first payoff
Example: $12,000 Across Three Debts
Suppose you have three debts and can put $500/month toward them total:
- Credit Card: $3,000 at 22% APR (min $75/mo)
- Personal Loan: $5,000 at 12% APR (min $125/mo)
- Car Loan: $4,000 at 6% APR (min $100/mo)
Snowball result:
Debt-free in ~28 months. Total interest: ~$2,180. First debt gone in 7 months.
Avalanche result:
Debt-free in ~27 months. Total interest: ~$1,920. Saves ~$260 over snowball.
Numbers are approximate. Use our calculators for exact results with your own numbers.
All Debt Calculators
Free tools to help you model different scenarios and find the best path forward.
Debt Payoff Calculator
See when you'll be debt-free based on your payment amount
Debt Snowball Calculator
Plan your smallest-first payoff strategy
Debt Avalanche Calculator
Minimize interest with highest-rate-first approach
Interest Calculator
See how much interest you're really paying
Minimum Payment Trap
Discover the true cost of minimum payments
Refinance Savings Calculator
Find out if refinancing could save you money
Debt vs Investing Calculator
Compare paying off debt vs investing extra money
After Debt: Investing Calculators
Once you're debt-free, put that momentum to work. These tools help you plan your next financial steps.
Invest Your Old Debt Payment
See how redirecting your debt payments into investments could grow over time
Emergency Fund Builder
Calculate how long it takes to build your safety net
Portfolio Growth Calculator
Model long-term compound growth for your investments
Financial Independence Age
Find out when your investments could cover your living expenses
In-Depth Guides
Detailed articles on debt payoff strategies and investing decisions.
Debt Payoff
Investing & Planning
Disclaimer: The calculators and information on this site are for educational purposes only and do not constitute financial advice. We are not financial advisors. Always consult a qualified professional before making financial decisions. Results are estimates based on the inputs you provide.