Debt Payoff Planner
List every debt once, then compare four strategies side by side, paying minimums, the avalanche, the snowball, and a single consolidation loan. See which clears your debt soonest, which saves the most interest, and the order to knock them out.
Strategy comparison
Every strategy pays the same minimums; the avalanche, snowball and consolidation add your extra budget. Lower interest and a nearer payoff date win.
| Strategy | Monthly | Payoff time | Total interest | Interest saved |
|---|
Total balance over time
Combined balance of all debts, month by month, under each strategy. The steeper the drop, the faster you are free.
Payoff order
The sequence your debts get cleared under the recommended strategy.
Yearly schedule
Annual summary of the recommended strategy: what you pay, how much is interest, and the balance left.
| Year | Paid | Principal | Interest | Balance |
|---|
How this is calculated
Month-by-month simulation
Every strategy is run as a real monthly simulation, not a formula shortcut. Each month, every debt accrues interest at its monthly rate r = annual% ÷ 12 ÷ 100 and its minimum payment is applied first. The principal paid is minimum − interest. This is more honest than the closed-form n = −ln(1 − B·r/A) ÷ ln(1 + r), which breaks when a payment barely covers interest.
Minimums only (the baseline)
Each debt is paid its own fixed minimum until it clears, nothing rolls over. This is the do-nothing baseline every other strategy is measured against. We assume the minimum stays fixed; real credit-card minimums are the greater of about 3% of the balance or a flat floor (5% in Quebec), which shrink over time and stretch payoff out even longer.
Avalanche vs snowball
Both pay every minimum, then pour your extra budget, plus every minimum freed up when a debt clears, onto one target debt. Avalanche targets the highest interest rate first: mathematically the least total interest. Snowball targets the smallest balance first: costs a little more but banks quick wins. The rolling "freed-up minimum" is what makes both dramatically beat paying minimums separately.
Consolidation loan
All balances are combined into one loan. Any origination fee is financed into the balance, so the loan amount is total debt × (1 + fee%). The fixed monthly payment is the standard amortization P·l ÷ (1 − (1 + l)⁻ⁿ) where l is the monthly loan rate and n = term × 12. Consolidation wins only when its rate beats your weighted-average rate and you don't reborrow. A longer term lowers the payment but can raise total interest, always compare the interest column, not just the payment.
2026 Canadian rate context
As of July 2026, unsecured personal-loan rates run roughly 8–13%, a HELOC sits near prime plus 0.5–1% (about 5–6% with prime at 4.45%), and balance-transfer cards advertise 0–3.99% promos for 6–12 months with a 1–3% transfer fee. Credit cards themselves average about 20.99%. Qualifying for the best rate depends on your credit score and income.
What this doesn't model
Declining percentage-based minimums, balance-transfer promo windows that expire, prepayment penalties, variable rates, new spending on cleared cards, or the tax treatment of interest. For a single card in detail try the credit card payoff calculator; for tapping home equity as a consolidation source see the home equity calculator.
A riba-free (halal) approach
If you avoid interest for religious reasons, the payoff logic still applies without taking on new riba: clear the highest-cost interest-bearing balances first, stop the meter by not carrying new interest, and where possible replace conventional debt with an interest-free arrangement (a qard hasan from family, or a Shariah-compliant provider). The interest figures here show the true cost of carrying the debt. See the halal finance hub for Shariah-aware tools.
Common questions
What is the difference between the debt avalanche and debt snowball methods?
Both pay the minimum on every debt and throw all spare cash at one target debt. The avalanche targets the highest interest rate first, which mathematically minimizes total interest and clears debt fastest. The snowball targets the smallest balance first, which costs a little more interest but delivers quick wins that keep many people motivated. When your smallest balance is also your highest rate, the two methods are identical.
Does a debt consolidation loan actually save money?
Consolidation helps only when two things are true: the new loan's interest rate is meaningfully lower than the weighted average of your current debts, and you stop adding new charges to the cards you paid off. A longer term can lower your monthly payment while raising total interest, so watch the total-interest column, not just the payment. In Canada, typical unsecured personal-loan rates run around 8–13%, a HELOC near prime plus 0.5–1% (about 5–6%), and balance-transfer cards offer 0–3.99% promos for 6–12 months.
Will paying off debt faster hurt my credit score?
No. Paying balances down lowers your credit utilization, which usually raises your score. Keep old cards open after consolidating so your available credit and account history stay high. A consolidation loan adds one hard inquiry and a new account, which may dip your score a few points temporarily, but on-time payments and falling balances recover it quickly.
What if my minimum payment does not cover the interest?
Then the balance grows every month and the debt never gets paid off on minimums alone, a real risk on high-rate cards. This planner flags any debt where the minimum is below the monthly interest. You must pay more than the interest each month for the balance to fall, which is exactly why the avalanche and snowball methods add extra money on top of the minimums.
Should I use a non-profit credit counselling program instead?
If your minimum payments already exceed what you can afford, a Debt Management Program through a non-profit credit counselling agency can consolidate payments and often negotiate reduced or waived interest with your creditors, without a new loan. It is different from a consumer proposal or bankruptcy. This tool models strategies that assume you can keep paying at least your minimums; if you cannot, speak with a licensed credit counsellor or Licensed Insolvency Trustee.