Plug in the balance and interest rates for each of your debts below, including credit cards, loans, payday loans, lines of credit, etc. Plug in how much money you can put towards paying off your debts every month. Then click ‘Calculate Your Savings’ to find out how long it will take you to be debt-free using different payment strategies. The calculator will also tell you how much money you could save in interest using different debt solutions!
By making just the minimum payments on your debt, it will take you years to pay off your debt and you will pay in interest charges. This is extra money you will pay which doesn’t go towards paying off the actual debt you accumulated. (Ouch!)
You have to pay towards your debt every month. You decide to focus on paying down the debts with the smallest balances first, while continuing to make minimum payments on your other debts.
Using this method, it will take you years to pay off your debt and you will pay in interest.
If you’re the type of person who is motivated (and stays motivated) by seeing your debts paid off faster, the Snowball Method is the debt repayment strategy for you. You might end up paying a bit more in interest than you would using the Avalanche Method, but if it means that you’ll stick to your repayment plan, it’s totally worth it.
You have to pay towards your debt every single month. You decide to focus on paying down the debts with the highest interest rates first, while continuing to make minimum payments on your other debts. You minimize your interest charges by attacking those high interest debts.
Using this method, it will take you years to pay off your debt and you will pay in interest.
If you're a Type A personality, then you’ll want to use the Avalanche Method for debt repayment. Using this strategy, you can save more in interest than you would using the Snowball Method; however, it might take you a bit longer to see that first debt balance paid off in full. But that’s no issue for you because you stay motivated by focusing on the end result, and on how much you’ll save in interest in the long-run.
You have to pay towards your debt every month. You have a good credit rating so you are able to get a debt consolidation loan from your bank with an annual interest rate of 8%. You pay off your debts with the consolidation loan, then pay towards that loan every month.
Using this method, it will take you years to pay off your debt consolidation loan and you will pay in interest.
Your credit rating isn’t great, so your bank turns you down for a debt consolidation loan. You meet with a certified non-profit credit counsellor and they set you up on a Debt Consolidation Program with a monthly payment of .
Using this method, it will take you 4 years to pay off your debt and you pay no interest.
| Minimum Payment Method | Snowball Method | Avalanche Method | Consolidation Loan (8% APR) | Credit Canada's Debt Consolidation Program | |
|---|---|---|---|---|---|
| Monthly Payment: | |||||
| Years to Payout: | |||||
| Total Interest Paid: | |||||
| Get Started With a Debt Consolidation Program |
| Method | Monthly Payment | Years to Payout | Total Interest Paid | |
|---|---|---|---|---|
| Minimum Payment Method | 0 | 0 | 0 | |
| Snowball Method | 0 | 0 | 0 | |
| Avalanche Method | 0 | 0 | 0 | |
| Consolidation Loan (8% APR) | 0 | 0 | 0 | |
| Credit Canada's Debt Consolidation Program | 0 | 4 | 0 | Get Started With a Debt Consolidation Program |
*Minimum payment is calculated at 2.5% of the outstanding debt balance at the time of payment.
**Calculation based on 8% annual interest rate. Actual interest rate may vary.
†Calculation based on 0% annual interest rate. Actual interest rate may vary.
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View the entire report including the amortization tables and exact payoff dates
This Report Includes the Amoritization Tables and Exact Payoff Dates
