How to Choose the Right Debt Payoff Strategy
When it comes to eliminating debt, two strategies dominate the conversation: the avalanche method and the snowball method. The avalanche method targets debts with the highest interest rates first, which minimizes the total interest you pay over time. If saving money is your top priority, avalanche is the way to go.
The snowball method, on the other hand, focuses on knocking out the smallest balances first. While you might pay a bit more in interest, the psychological boost of eliminating a debt quickly can be incredibly motivating. Research shows that people who use the snowball method are more likely to stick with their payoff plan because those early wins create a sense of progress.
Regardless of which method you choose, adding extra payments is one of the most powerful things you can do. Even an extra $50 per month can shave months off your timeline and save hundreds — sometimes thousands — in interest. The calculator above shows you exactly how much you'll save with any extra amount.
Once you've built your plan, the key is consistency. That's where Toffee comes in. Toffee is a free app for iOS and Android that tracks every payment, shows your projected debt-free date, and keeps you motivated with progress updates. Think of it as your debt payoff plan on autopilot — set your strategy, log your payments, and watch your balances shrink.