Avalanche vs. Snowball: Choose the Smartest Path
Getting out of debt is one of the most impactful steps you can take toward your FIRE goals. However, choosing the right strategy can save you thousands of dollars and months of interest payments. NovaPlan's Debt Paydown tool is built to let you model credit cards, student loans, auto loans, and mortgages in one consolidated visual interface.
The simulator compares two industry-standard payoff strategies: the **Debt Avalanche** method (prioritizing the highest interest rate first to minimize total interest paid) and the **Debt Snowball** method (prioritizing the lowest balance first to build quick psychological momentum). By seeing the mathematical difference side-by-side, you can make an informed decision that fits your style.
Debt Avalanche Method
Targets debts with the highest interest rates first. Saves the most money mathematically by avoiding excessive compound charges.
Debt Snowball Method
Targets debts with the smallest balances first. Perfect for gaining momentum and eliminating individual account overhead quickly.
Extra Payoff Accelerator
Model how adding an extra fixed monthly payment affects your debt-free target date and total interest saved.