You provide a list of all your debts (credit cards, lines of credit, car, mortgage, other revolving loans) together with some basic information (annual interest rate, minimum monthly payment, etc.)

You then enter how much money you can afford to repay toward your debts each month. Let's call this amount your

You must pay at least this amount every month. Of course, the more you can commit to it, the faster the debts will be gone.

Using the Debt Avalanche method, this calculator will then rearrange your debts to be paid off from highest to lowest interest rates. The minimum monthly payment will then be applied to all debts using your Money Bag and any excess amount remaining in your bag will be applied to the first debt (highest interest rate) on the list.

Once the first debt is paid off, the money you were paying against it monthly automatically gets used toward the next highest interest rate debt and so on. Like an avalanche going downhill, the amount available to repay your current highest interest rate debt becomes higher and higher with each eliminated debt until all your debts are paid off.

Try different Money Bag amounts to see how quickly you can get out of debts.

Please do not enter any confidential information in the Debt Name column. For example, simply enter "Blue Car" instead of a bank or loan account number.

Debt Name | Name you want to use to identify this debt. (No personally identifying info or account number here please) |
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Debt Amount | Current balance of this debt |

Interest Rate | Current annual interest rate of this debt (Ex: 0.1999 indicates 19.99% interest rate) |

Minimum Payment | Identify the mimimum amount to be paid on each period to this debt. This can either be a percentage of your debt amount or a fixed amount. If you enter an amount lower than 1, it will be considered a percentage of your debt amount. If you enter an amount greater than or equal to 1, it will be considered a fixed amount. Ex: 100 means $100 per payment period while 0.035 means 3.5% of your principal |

Flexible Pmt | If this box is checked, you are allowed to change the payment amount. If unchecked, the mimimum payment amount entered will be considered a fixed payment amount per period. In other terms, when the Flexible Pmt checkbox is checked, even if you have extra money remaining in your Money Bag, it will not be applied to this debt as it is a fixed monthly payment. Ex: A car loan or a mortgage have fixed monthly payment agreed with your lender while credit cards allow you to pay off any amount equal to or above the minimum payment required. |

New Spending | You can enter a monthly recurring amount being added to a particular debt. For example, you might have recurring monthly fees of $20 for video streaming subscription and $150 for your car insurance payment. You should then enter $170 in this field. This amount gets added to your principal prior to determining payment amount each month. |