Decision path
Get Out of Debt: A Three-Step Decision Path
Getting out of debt is three decisions, not one: which debt to attack first, whether a consolidation loan actually saves you money, and what to do with the monthly payment you free up. This path walks you through all three with the same tested calculators you can open individually — your debts carry forward into the consolidation check, every field stays editable, and the final step starts fresh with the payment you freed up.
Step 1
Map your payoff plan
List every debt with its balance, APR, and minimum payment, then add whatever extra you can pay each month. The simulation runs both the avalanche and snowball strategies month by month so you can see exactly how long payoff takes and how much interest each order costs.
Debts
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Step 2
Test a consolidation loan
Your debts carry over from step 1. Enter the APR and term a lender is offering to see whether consolidating actually beats your current plan — a lower rate with a long enough term can still cost you more in total interest. Watch the blended APR: an offer above it rarely helps.
Debts
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Step 3
Redirect the freed payment
Once the debt is gone, the money that serviced it is yours again. Take the monthly payment your plan frees up — for example, your old minimum payments minus the consolidation payment from step 2 — and see what savings target it can reach, from an emergency fund to a down payment. Compare it with the required monthly rate below.
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Frequently asked questions
Should I pay off debt with the avalanche or snowball method?+
The avalanche method (highest APR first) always pays equal or less total interest, so it is mathematically optimal. The snowball method (smallest balance first) closes accounts sooner, which many people find easier to stick with. Step 1 shows both outcomes for your exact debts, so you can see how much the motivational shortcut actually costs. The best plan is the one you will follow — this path shows the numbers, not a verdict, and it is not financial advice.
Is a consolidation loan always a good idea?+
No. A consolidation loan replaces several payments with one, usually at a lower APR — but if the new term is long enough, you can pay more total interest despite the lower rate. Step 2 flags exactly this trap by simulating your existing debts against the offer. Also account for origination fees, which this calculator does not model, and check whether your current debts carry prepayment penalties.
Should I save or invest the money I free up?+
A common rule of thumb is to build a small emergency fund first (so a surprise expense doesn't push you back into high-interest debt), then decide between saving and investing based on your goals and timeline. Step 3 shows the monthly rate a given savings target requires under conservative, expected, and Monte Carlo assumptions. For decisions of real size, talk to a qualified financial professional — this tool illustrates the math, it does not give advice.
Do these calculators send my numbers anywhere?+
No. Every calculation on this page runs in your browser using the same tested formulas as the standalone calculators. Nothing you type is uploaded or stored.