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Browse all cards →§ 32 · live tool
Debt Snowball vs Avalanche
Multiple credit cards and loans? List them, set your extra payment, and see which strategy clears them fastest and cheapest — snowball (smallest first) vs avalanche (highest APR first).
Your debts
Name
Balance
APR (%)
Min payment / mo
₱
%
₱
₱
%
₱
StrategyWe compute both side-by-side. Snowball clears smallest balance first (psychological wins). Avalanche clears highest APR first (mathematically optimal).
Winner
Both strategies finish at roughly the same time and cost — pick the one you'll stick with.
| Snowball | Avalanche | |
|---|---|---|
| Months to debt-free | 27 | 27 |
| Total interest paid | ₱56,528 | ₱56,528 |
| Total paid (principal + interest) | ₱286,528 | ₱286,528 |
| Payoff order | Credit Card → Personal Loan | Credit Card → Personal Loan |
Tool reviewed 2026-06-14
Where to next?
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How it works
Each month. Every active debt accrues interest at APR ÷ 12. You pay the minimum on every debt. Then whatever extra you allocated goes to one debt — the smallest balance (snowball) or the highest APR (avalanche).
When a debt is cleared. Its minimum payment rolls into the extra pool and accelerates the next debt. This is the "snowball" / "avalanche" effect — payoff accelerates as you go.
We compute both side-by-side. Same debts, same extra payment — once with snowball ordering, once with avalanche. The result tells you exactly how much time and interest avalanche would save (or whether snowball is close enough that the motivation matters more).
Pure browser-side math. We use flat minimum payments (conservative); real PH cards typically allow declining minimums, so actual payoff may be marginally faster than shown. No tracking, no accounts.
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Frequently asked questions
What's the difference between snowball and avalanche?
Snowball pays off your smallest balance first, then rolls that freed-up payment to the next smallest — quick psychological wins build momentum. Avalanche pays off your highest-APR debt first, then rolls down by interest rate — mathematically optimal, saves the most interest. Both methods pay the minimum on every other debt; the difference is which debt gets the extra payment.
Which method should I actually use?
Avalanche saves more money. But if you've tried before and lost motivation, snowball's faster early wins keep you in the game. The best method is the one you'll stick with for 2–5 years until you're debt-free. If you're equally disciplined either way, go avalanche.
What if my minimum payment doesn't cover the monthly interest?
Your balance grows forever — you're literally drowning. The calculator flags this. Options: (1) add extra payment until you're paying more than interest, (2) negotiate a lower APR with the issuer, (3) balance-transfer to a lower-rate card, (4) consolidate into a personal loan at 12–18% APR. Don't ignore this — interest compounds against you.
What APR should I enter for my Philippine credit card?
PH credit cards are capped by BSP Circular 1098 at 3% per month (~36% per year nominal). Most issuers charge the full 36% APR on revolving balances. Personal loans run 12–24% APR depending on bank and tenor. Auto and home loans run 6–10%. If you're unsure, check your statement or the issuer's website.
Should I save first or pay debt first?
Build a small ₱20K–₱50K emergency buffer first so a flat tire doesn't put you back on the credit card. Then attack high-APR debt aggressively — anything above 15% APR is a guaranteed return that beats any investment you'd realistically make. Once high-APR debt is cleared, redirect to emergency fund + investing simultaneously.
Does the calculator account for changing minimum payments?
No — we use a flat minimum payment each month, which is the conservative assumption. Real PH credit cards typically require 3–5% of the outstanding balance or ₱200 minimum, whichever is higher, so your minimum drops as the balance drops. Real payoff is usually slightly slower than our estimate. The relative comparison between snowball and avalanche stays the same.
What is 'extra payment per month'?
Any peso amount above the sum of your minimum payments you can dedicate to debt. If you have ₱10K of minimums and ₱13K to spend on debt, your extra is ₱3K. When a debt is paid off, its minimum rolls into the extra pool (this is the snowball/avalanche effect that accelerates the rest).
Does this save or transmit my data?
No. All calculations run in your browser. We don't store, log, or transmit any of your balances or numbers.
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Sources & references
From official issuer, regulator, and data-provider sites. Verify any figure against the primary source before acting on it.