Debt Payoff Net Worth Impact

Compare different debt payoff strategies and see how they impact your net worth over time. Find the best approach for your financial situation.

Debt Payoff Strategies Explained

Aggressive Method

Pay minimums on all debts, then distribute extra payments proportionally across all debts based on their remaining balances. Often the most mathematically optimal approach.

Avalanche Method

Pay minimums on all debts, then put extra money toward the debt with the highest interest rate. This saves the most money on interest over time.

Snowball Method

Pay minimums on all debts, then put extra money toward the debt with the smallest balance. This provides quick psychological wins and motivation to continue.

Minimum Only

Pay only the minimum required payment on each debt. This is the baseline approach that shows the cost of not paying extra.

Aggressive

+$0
Net worth in 5 years
Interest paid: $0

Avalanche

+$0
Net worth in 5 years
Interest paid: $0

Snowball

+$0
Net worth in 5 years
Interest paid: $0

Minimum Only

+$0
Net worth in 5 years
Interest paid: $0

Your Debts

Total Debt: $25,000

Note: Once debt is paid off, extra payments will be invested at the specified return rate.

Net Worth Impact Over Time

MonthAggressiveAvalancheSnowballMinimum Only

Visual Impact to Net Worth

Aggressive
Avalanche
Snowball
Minimum Only

These tools are for educational purposes only. For personalized financial advice, please consult with a qualified financial professional.