Priyanka Personal Finance
Smart Money · Simple Words · India
Smart Money · Simple Words · India
List your loans and credit cards, add what extra you can pay each month — see both payoff methods compared: months to debt-free, total interest, and exactly which debt to attack first.
Estimate only · Not financial advice · Assumes fixed rates & payments, monthly compounding · Prepayment charges (if any) not included · Clear credit-card dues first regardless of method
Both methods start the same: pay the minimum EMI on every debt, and throw every extra rupee at ONE target debt. When the target is cleared, its freed-up EMI rolls into the next target — payments "snowball" bigger over time. The only difference is the order:
The calculator above runs a month-by-month simulation of both on your actual debts, so the choice stops being theoretical.
If the avalanche saving shown above is large (₹20,000+), go avalanche — that's real money. If the difference is small, behavioural research says pick snowball: people who see a debt fully closed within months are far more likely to finish the journey. A plan you abandon saves nothing.
One India-specific override: credit card debt (36-42% p.a.) is an emergency in both methods — it compounds faster than any investment earns. If you carry card dues, they're effectively always target #1. See our Credit Card Payoff Calculator for that battle specifically.
You pay minimums on all debts and put every extra rupee at the SMALLEST balance first. When it's cleared, its EMI rolls into the next smallest. You lose a little on interest but get quick wins that keep you motivated.
You pay minimums on all debts and put every extra rupee at the HIGHEST interest rate first (usually credit cards at 36-42%). Mathematically this always saves the most interest and is usually fastest.
Avalanche saves more interest — the calculator shows exactly how much on your debts. But studies show people are more likely to FINISH with snowball because early wins keep motivation alive. The best method is the one you'll stick to; if the difference is small, pick snowball.
Almost always credit card dues first — at 36-42% interest they grow faster than any investment earns. Then personal loans (11-18%), then vehicle/education loans, and home loans last (8-9%, with tax benefits).