How the debt payoff planner works
Last updated 10 November 2026
Paying off several debts at once is mostly a question of order. Every month you pay at least the minimum on each debt. Whatever you can add on top goes to one debt first, and when that one is cleared its payment rolls over to the next. This planner runs that month by month and shows the result.
How it works
Each month the planner adds interest to every balance (the yearly rate divided by 12), pays every minimum, and then puts all the remaining money on the debt your chosen method picks.
- Avalanche: the extra goes to the highest interest rate first. This normally gives the lowest total interest.
- Snowball: the extra goes to the smallest balance first. Each cleared debt is a quick win and frees up its minimum payment.
- Minimums only is the comparison: every debt paid on its own with no extra and no rollover.
Worked example
The three starting debts together owe R 64 000. With the extra amount shown, the plan pays R 3 400 a month in total.
- The first debt cleared is Store card, after 5 months.
- Everything is cleared in 1 year 11 months.
- Total interest is R 11 763, which is R 8 476 less than paying minimums only.
Avalanche and snowball compared
Both methods pay every minimum and send the extra to one debt. They differ only in which debt that is. Avalanche looks at the interest rate, so the extra money goes to the most expensive debt first. Snowball looks at the balance, so the smallest debt is cleared soonest and the number of open debts falls sooner.
Switch the setting and compare the total interest and the time to clear everything. When one debt has both the highest rate and the smallest balance, the two methods give the same plan. Change a balance or a rate and they start to differ.
How to read your result
Total interest is what borrowing costs over the whole plan. The planner compares it with paying minimums only, where each debt is paid on its own with no extra and no rollover. With the starting figures the difference is R 8 476 in interest.
The order in which debts are cleared shows how the rollover works. When a debt is paid off, its minimum is added to the payment on the next one. The total paid each month stays the same from the first month to the last. In the starting example that is R 3 400 a month.
If the planner says the debts are not cleared within 100 years, the payments are too small to beat the interest being added each month. A higher minimum or a larger extra amount is needed before the plan ends.
Getting your inputs right
- Take the balance and the interest rate from your latest statement, not from the original agreement.
- Card and loan rates are quoted for a year. The planner divides the rate by 12 and adds that interest to each balance every month.
- The minimum is the amount the lender requires each month. Some lenders lower it as the balance falls. The planner keeps your entered figure, so the plan may be a little faster than a lender’s own schedule.
What the planner does not cover
The planner works only with the figures you give it. It leaves out late fees, monthly service fees, insurance premiums and rate changes during the plan. Check your agreement for any early settlement terms before paying a debt off ahead of schedule. A registered debt counsellor can explain the options if the payments are more than you can manage.
Things to watch
- Keep paying every minimum on time. Missing one can mean fees and a worse interest rate that the planner does not know about.
- The planner does not add new spending on the cards. New purchases would add to the balances.
- A cheaper loan used to settle expensive debt can lower the total interest. Check the fees and terms with the lender before you decide.
The planner gives facts about your numbers, not advice. See the disclaimer. To find the extra money, try the monthly budget planner.