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Credit Card Payoff Calculator

Plan your debt payoff strategy and become debt-free faster

Your Credit Cards

Payoff Strategy

Payoff Summary

23 Months to Debt Free

Total Payment: ₹1,10,699

Total Balance

₹80,000

Total Interest

₹30,699

Understanding Debt Payoff Strategies

There are two popular strategies for paying off multiple credit cards: the Debt Avalanche and the Debt Snowball methods. Each has its advantages and can help you become debt-free.

Debt Avalanche Method:

  • Pay minimum on all cards
  • Put extra money toward highest interest card
  • Mathematically saves the most money
  • Reduces interest charges faster
  • Best for those motivated by numbers

Debt Snowball Method:

  • Pay minimum on all cards
  • Put extra money toward lowest balance
  • Creates quick wins and motivation
  • Reduces number of payments faster
  • Best for those motivated by progress

Example Calculation:

With two credit cards:

  • Card 1: ₹50,000 at 36% APR
  • Card 2: ₹30,000 at 42% APR
  • Monthly Payment: ₹5,000
  • Avalanche Method: 24 months, ₹38,000 interest
  • Snowball Method: 24 months, ₹41,000 interest

Important Note:

The best strategy is one you can stick to consistently. Consider factors like motivation and financial goals when choosing between Avalanche and Snowball methods.