Get out of debt faster with a clear plan. Enter your debts and choose avalanche (minimum interest) or snowball (smallest balance first) to see your payoff timeline, interest saved and month-by-month strategy.
Enter your debts (balance, interest rate, minimum payment):
The debt avalanche method (paying highest-interest debt first) saves the most money in interest. The debt snowball method (paying smallest balance first) generates the fastest psychological wins and is better for maintaining motivation. Research shows both work — the best method is the one you actually stick to. Our planner models both so you can choose.
Pay minimum on all debts, throw all extra money at the highest-interest debt first. Once paid, redirect that payment to the next highest. This minimises total interest paid and typically results in being debt-free fastest in financial terms. Best for people motivated by numbers and total cost optimisation.
Pay minimum on all debts, throw extra at the smallest balance first regardless of interest rate. Early wins (paying off small debts completely) release mental bandwidth and build momentum. Research (Harvard, 2016) shows snowball users pay off more debt faster in practice, because motivation sustains the process. Best for people who need visible progress.
Both work. The best method is the one you will stick to for months or years. Avalanche saves the most interest mathematically. Snowball generates faster psychological wins (paid-off debts) that sustain motivation. If the difference in total interest cost is small (often under £200 for most people's debt loads), choose the method that feels more motivating to you. The mathematical optimum is worthless if you abandon it after three months.
As much as possible after building a small emergency fund (£1,000 minimum before aggressive debt payoff). The return on paying off high-interest debt is guaranteed and equal to the interest rate — a 22.9% APR credit card: paying extra is a guaranteed 22.9% return. This beats most investment returns. Exception: do not pause pension contributions to the point of losing employer match, as this is an immediate 100% return.
General guidance: (1) Build a £1,000 emergency fund first; (2) Contribute to pension to the level of employer match; (3) Pay off high-interest debt (above 8%) aggressively; (4) Once high-interest debt is clear, build emergency fund to 3-6 months expenses; (5) Then invest surplus in ISA/pension. Exception: student loan debt (Plan 2) has low effective interest and is written off after 30 years, so normal investment typically beats paying it off early.