A calculator used to show how to pay off debt quickly and save money (Instructions).
In debt? Don't know how to get out? The "debt snowball," a term coined by Dave Ramsey, is a system to get out of debt:
- gather as much money together as you can to eliminate debt
- get your debts and put them in order
- payoff your debts in order; when one loan is paid off, use that payment on the next loan.
Dave Ramsey suggests you pay off your lowest balance first to get a sense of accomplishment. We think snowballing in a way that saves you the most amount of money ought to be more motivation. We give multiple ways to determine how to order your debts so you can find out what works best for your situation.
Simply enter in your debts. Click 'add a loan' if you need to add another one. The results are calculated on the fly and shown in a handy graph for a visual demonstration of how interest grows.