⛓️ How much cash flow could you free from debt?

You recognize the cycle: income covers obligations, but wage advances keep you stuck. When you work two jobs and still feel like you are going backwards, it is easy to lose hope. This calculator shows how your current payments are actually eating away at your balances behind the scenes, and exactly when you will break free to reclaim your cash flow.

The CFPB notes that the highest interest rate method eliminates your costliest debts first, which can save you money in the long run. By attacking your most expensive balance, you reduce the total interest that accrues each month.

To see this in action, enter your most expensive debt here. For most people, this is a credit card with an APR of 20% or more.

Enter your largest debt here, such as an auto loan or personal loan. Because of its size, this debt usually takes the longest to eliminate under either strategy.

This calculator simplifies away a few real-world variables to make the comparison clear: it assumes fixed APRs, a constant monthly payoff budget, a stylized 2% minimum payment on all non-target debts, and no new charges.

Your total monthly payoff budget must cover the minimum payments for all your debts, with enough left over to attack the target debt. If your budget does not even cover the first month's minimums plus interest, your balances will never shrink.

The CFPB frames the choice by motivation: pick the highest-rate method if you are motivated by saving the most money, and the snowball method if you are motivated by seeing progress quickly.

This view was inspired by:

• debt-avalanche-vs-snowball

For further related reading, check out:

• Reddit