Debt Payoff Planner
Track multiple debts with balances, minimum payments, and extra payments applied, using either the snowball (smallest balance first) or avalanche (highest interest first) method, with a projected payoff date for each.
Debt payoff strategies (commonly debt snowball, paying smallest balances first, versus debt avalanche, paying highest interest first) get debated extensively online, but the more important factor for most people is simply having a tracked plan they'll actually stick with, regardless of which mathematically optimal method is chosen.
Why the psychological method often outperforms the mathematical one
The avalanche method saves more money in interest mathematically, but the snowball method's quick wins from eliminating smaller balances first tend to sustain motivation better for many people, which matters more in practice than theoretical optimization if it leads to actually finishing the payoff plan.
What a payoff date projection does for motivation
Calculating and logging a projected payoff date based on current payment amounts gives a concrete target to work toward, which tends to be more motivating than an open-ended sense of "someday" without a specific point to aim for.
A note on tracking extra payments separately
Logging extra payments separately from minimum payments shows the direct impact of any additional money put toward debt, which is often the most motivating part of the entire tracker, since it demonstrates control over the payoff timeline in a way minimum payments alone don't.
Frequently asked questions
Should I use the debt snowball or debt avalanche method?
Avalanche (highest interest first) saves more money mathematically, but snowball (smallest balance first) tends to sustain motivation better for many people through quick early wins. The best method is the one you'll actually stick with.
Why should I calculate a projected payoff date?
A concrete date gives a specific target to work toward, which tends to be more motivating than an open-ended sense of working on debt indefinitely without a defined endpoint to aim for.
Should I track extra payments separately from minimum payments?
Yes, this shows the direct impact of any additional money put toward debt, which is often the most motivating part of tracking, since it demonstrates real progress and control over the payoff timeline.
How many debts should I track at once?
All of them together in one place tends to work best, even if you're focusing payoff efforts on just one at a time, since seeing the full picture helps with overall financial awareness and planning.
What if my payoff date keeps moving further away?
This is useful information suggesting either income, expenses, or payment amounts need adjustment. Catching this through tracking is more useful than only discovering it once debt has grown rather than shrunk.