"Get Clarity on your Debt. Make the Decision to be Free."
The most secure way to visualize your freedom date using Snowball or Avalanche strategies.
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Imagine you have a $5,000 credit card balance at 18% APR. Paying just the minimum ($100), it will take you over 7 years to pay off.
Paying off debt effectively requires more than just making payments; it requires a mathematical strategy. Clarity Decisions provides professional-grade tools usually reserved for financial advisors, completely free, in a privacy-first environment.
This calculator uses standard NPER (Number of Periods) and PMT (Payment) financial formulas to simulate amortization. It assumes that minimum payments are either a fixed amount or a percentage of the balance. Interest is compounded monthly. Results are estimates for planning purposes.
Deep dive guides to help you master your finances.
The Avalanche Method targets debts with the highest interest rate (APR) first. Mathematically, this is superior because it minimizes the amount of interest that compounds against you. For a typical user with $10k in debt, Avalanche can save $500-$2000 in interest compared to random payments.
The Snowball Method targets debts with the lowest balance first. While this may cost more in interest over time, behavioral finance studies suggest that the "quick wins" of eliminating small debts motivate people to stick to the plan longer.
Did you know you can often lower your APR just by asking? Use this script:
Balance Transfers (0% Cards): Best for debts under $10k that you can pay off in 12-18 months. Watch out for the 3-5% transfer fee. If you don't pay it off in time, interest shoots back up.
Consolidation Loans: Better for larger debts ($10k+). These are personal loans with a fixed rate (e.g., 8-12%) used to pay off high-interest cards (20%+). They simplify your life into one monthly payment.
If you cannot make minimum payments, stop using the calculator and switch to survival mode. Prioritize your "Four Walls" first:
Unsecured debts (credit cards) come last. Contact a non-profit credit counselor (like the NFCC) immediately.