Strategic Debt Repayment Guide
Paying off debt effectively requires more than just making payments; it requires a mathematical strategy. Clarity Decisions provides professional-grade tools usually reserved for financial advisors, completely free.
Snowball Method
Targeting the smallest debt balance first to build psychological momentum. Best for staying motivated.
Avalanche Method
Targeting the highest interest rate first to minimize total cost. Best for mathematical optimization.
Consolidation
Combining multiple high-interest debts into a single lower-interest loan to reduce monthly payments.
Common Questions
Which debt should I pay off first?
If you need a quick "win" to feel good, pay off the smallest balance (Snowball). If you want to save the most money over time, pay off the debt with the highest interest rate (Avalanche). Our calculator allows you to toggle between both to compare.
Does this tool work for student loans?
Yes. You can enter student loans, credit cards, car finance, and personal loans. We generally recommend prioritizing high-interest consumer debt (credit cards) over lower-interest student loans.
Is my data secure?
Absolutely. Clarity Decisions operates on a "Client-Side" model. This means all calculations happen instantly on your device. We do not have a database, user accounts, or any way to see your financial numbers.
Calculation Methodology
This calculator uses standard NPER and PMT financial formulas to simulate amortization. It assumes that minimum payments are either a fixed amount or a percentage of the balance (calculated as 2% for credit cards by default if not specified). Interest is compounded monthly. Results are estimates for planning purposes.