What Credit Cards Should I Pay Off First Calculator

Deciding which credit cards to pay off first can save you money and help you get out of debt faster. This calculator helps you determine the best order to pay off your credit cards using either the avalanche method (paying highest interest first) or the snowball method (paying smallest balances first).

How to Use This Calculator

To use this calculator, you'll need to know:

The current balance on each of your credit cards
The interest rate on each card
The minimum monthly payment for each card

Enter this information into the calculator on the right side of the page. The calculator will then show you the recommended order to pay off your cards using both methods.

Tip: Before using the calculator, make sure you've gathered all the necessary information about your credit cards. This will help you make the most accurate decisions about your debt.

The Avalanche Method

The avalanche method is a debt payoff strategy that focuses on paying off the highest interest rate credit cards first. This method can save you money in interest charges over time.

How It Works

List all your credit cards in order of highest to lowest interest rate
Make the minimum payment on all cards
Put any extra money you have toward the card with the highest interest rate
Once that card is paid off, take that payment and apply it to the next highest interest rate card
Repeat until all cards are paid off

Formula: The avalanche method works because it minimizes the total interest paid by focusing on the highest interest debts first.

Example

Suppose you have two credit cards:

Card A: $1,000 balance at 18% interest
Card B: $500 balance at 12% interest

Using the avalanche method, you would pay off Card A first because it has the higher interest rate. This would save you money in interest charges over time.

The Snowball Method

The snowball method is a debt payoff strategy that focuses on paying off the smallest credit card balances first. This method can provide psychological benefits and motivation as you see your debt disappear.

How It Works

List all your credit cards in order of smallest to largest balance
Make the minimum payment on all cards
Put any extra money you have toward the smallest balance card
Once that card is paid off, take that payment and apply it to the next smallest balance card
Repeat until all cards are paid off

Formula: The snowball method works because it provides quick wins that can motivate you to continue paying off your debt.

Example

Using the same two cards from the avalanche example:

Card A: $1,000 balance at 18% interest
Card B: $500 balance at 12% interest

With the snowball method, you would pay off Card B first because it has the smaller balance. This would give you a quick win and motivation to continue paying off your debt.

Avalanche vs. Snowball

Both the avalanche and snowball methods have their advantages and disadvantages. Here's a comparison to help you decide which method is right for you.

Avalanche Method	Snowball Method
Saves money in interest charges	Provides quick wins and motivation
May take longer to pay off debt	May cost more in interest over time
Good for people who need to minimize interest	Good for people who need motivation

Note: The best method for you depends on your personal situation and financial goals. Consider both methods and choose the one that works best for you.

Frequently Asked Questions

Which method is better, avalanche or snowball?: There's no one-size-fits-all answer. The avalanche method saves more money in interest, while the snowball method provides quick wins and motivation. Choose the method that works best for your personal situation.
Can I use both methods together?: Yes, you can combine elements of both methods. For example, you might use the snowball method to pay off smaller debts quickly while using the avalanche method to minimize interest on larger debts.
How long will it take to pay off my credit cards?: The time it takes to pay off your credit cards depends on how much you can pay each month and which method you choose. The calculator can help you estimate how long it will take using either method.
What if I can't make the minimum payment on all cards?: If you can't make the minimum payment on all cards, focus on paying the minimum on the cards you can and put any extra money toward the card with the highest interest rate (avalanche) or the smallest balance (snowball).
Should I pay off all my credit cards at once?: It's generally better to pay off your credit cards one at a time using either the avalanche or snowball method. Paying off all cards at once can lead to higher interest charges and may not be feasible for everyone.