Debt Payoff Calculator
Compare debt snowball (smallest balance first) vs debt avalanche (highest interest rate first). See exactly how long each takes and how much you save in interest.
Snowball vs avalanche — which should you use?
Avalanche (highest rate first) is mathematically optimal — it minimizes total interest paid. If your debts have meaningfully different APRs (a 24% credit card vs a 6% student loan), avalanche saves real money over the payoff period.
Snowball (smallest balance first) is psychologically optimal — paying off the first card in 3 months feels like winning, which keeps you motivated. You'll pay slightly more in interest, but you're more likely to stick with the plan to completion.
Pick based on your honest assessment: if you're disciplined and the math motivates you, avalanche. If you've abandoned debt-payoff plans before, snowball.
How debt payoff affects your credit score
Paying down credit cards drops utilization at the next reporting cycle (~30 days), which is 30% of your FICO score. Pay before the statement-close date so the new lower balance is what gets reported. Don't close paid-off cards — closing reduces total available credit and raises utilization.
If a debt has been charged off but you still owe it, paying it doesn't remove the negative mark — it just changes the status to "paid charge-off." Removal requires a successful FCRA dispute. See: how to remove a charge-off →
Pay it off + repair what's reported.
CreditCougar handles the credit-report side: FCRA-compliant dispute letters that target inaccurate or unverifiable items. Pair with a debt-payoff plan for compounding score gains.
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