What is the difference between the snowball and avalanche methods?

Both pay the minimums on every debt every month. The snowball method directs any extra payment at the debt with the smallest balance, no matter the interest rate, so you clear whole accounts quickly and stay motivated. The avalanche method directs the extra at the debt with the highest interest rate, so you pay the least interest in total. The calculator runs both side by side so you can see the difference in payoff date and total interest for your specific debts.

Which is better, snowball or avalanche?

Avalanche always wins on pure maths because it kills the highest-rate interest first. Snowball usually wins in practice because the early account closures keep people committed long enough to actually finish. If avalanche only saves you a small amount, pick snowball. If your highest-rate debt is also a meaningful chunk of what you owe, the avalanche saving can be significant and is usually worth the slower start.

Should I pay extra on the smallest debt or the highest-rate debt?

Always keep the minimums going on every debt to avoid fees and credit damage. Then pick one target debt for the extra payment. Smallest balance gives you the snowball method (faster wins). Highest interest rate gives you the avalanche method (less total interest). Splitting the extra across multiple debts is the worst option because no single debt clears any faster.

How much extra should I put toward debt each month?

As much as you can sustain without skipping rent, groceries, or essential bills. Even an extra R500 to R1,000 per month against a high-rate balance can shave years off the payoff timeline because of how compounding works in reverse. Use the calculator to see what different extra amounts do to your payoff date and total interest.

Does this calculator work for credit cards, personal loans, and store accounts?

Yes. Add any debt that charges interest: credit cards, store accounts, personal loans, vehicle finance, overdrafts. The calculator only needs the current balance, the annual interest rate, and the minimum monthly payment for each one. It does not include home loans by default since those usually have very different payoff strategies tied to bond structuring.

What if my minimum payment is less than the monthly interest?

Then the debt is going backwards. The calculator detects this and shows a warning instead of an unrealistic payoff date. To fix it, either increase the minimum payment, add an extra monthly amount, or speak to the lender about a restructure. In severe cases, debt review under the National Credit Act is the formal route in South Africa.

Should I consolidate my debts instead of paying them off one by one?

Consolidation only helps when the new loan has a meaningfully lower interest rate than the weighted average of your existing debts and you actually keep the discipline of not running up the old accounts again. If the consolidation rate is similar or higher, you are just extending the term and paying more interest overall. Run both scenarios through the calculator before committing.

What is debt review under the NCA and when should I consider it?

Debt review (or debt counselling) is a formal process under the National Credit Act where a registered debt counsellor restructures your repayments to an affordable level and protects you from legal action while the plan runs. It is the right route when you genuinely cannot make the minimum payments on your debts. While in debt review you cannot take on new credit, and your credit profile reflects the status until you exit. See ncr.org.za for the official process.

Debt Payoff Planner

Name: Debt Payoff Planner
Availability: InStock
Author: Ndulamiso Mamburu

Compare the snowball and avalanche methods side by side. See your debt-free date, total interest, and how much extra payments save you.

Reviewed by

Ndulamiso Mamburu· BCompt (Acc. Sci.), South African Revenue Service (SARS)Last reviewed: 25 April 2026

Your Debts

Balance (R)

APR (%)

Min / month (R)

Balance (R)

APR (%)

Min / month (R)

Balance (R)

APR (%)

Min / month (R)

Extra Monthly Payment (R)

Any extra cash on top of the minimums. This is the amount that gets funneled into the target debt each month and creates the difference between the two strategies.

Results

Add your debts and any extra monthly payment, then click
"Compare Strategies" to see your payoff plan.

In this guide

What Is a Debt Payoff Planner?

A debt payoff planner takes your real debt list, accounts for the interest each one charges, and works out exactly when you can be debt-free. It also tells you which order to attack the debts in to either pay the least interest or stay motivated long enough to actually finish.

The planner runs two strategies for you in parallel. The snowball method clears the smallest balance first to give you quick wins. The avalanche method clears the highest interest rate first to save you the most money. You get a clear comparison of both, including the payoff date and total interest under each approach.

The numbers update around your real situation: minimum payments stay in place on every debt, and any extra you can spare gets directed at one target debt at a time.

Snowball vs Avalanche

Both strategies pay the minimums on every debt. The difference is where the extra money goes each month.

Snowball method

Throw every extra rand at the debt with the smallest balance, no matter the interest rate. When that one is gone, roll its payment into the next-smallest balance.

Strength: quick wins early on. Closing a whole account in the first few months keeps people committed when motivation matters most.

Avalanche method

Throw every extra rand at the debt with the highest interest rate, regardless of balance. When that one is gone, move to the next highest rate.

Strength: pays the least interest in total. Best when your highest- rate debt is also a meaningful chunk of what you owe.

When the difference between the two methods is small in rands, pick snowball. The behavioural lift of clearing accounts is worth more than a minor interest saving. When avalanche saves a meaningful amount, it usually means one of your debts is at a much higher rate than the rest, and that one deserves the focus.

How to Use This Debt Payoff Planner

You only need three numbers per debt: the current balance, the interest rate, and the minimum monthly payment. Pull these from your most recent statements.

List every debt with a balance

Credit cards, store accounts, personal loans, vehicle finance, overdrafts. Anything charging interest belongs on the list.

Enter the current balance

Use the most recent statement balance. Small day-to-day variation does not change the strategy.

Add the interest rate (APR)

This is on every statement. South African unsecured rates often sit between 18% and 28% under NCA caps.

Add the minimum payment

The minimum the lender requires each month. The calculator always pays at least this much per debt.

Add any extra you can put toward debt

Any extra rand goes to the target debt. Even R500 per month dramatically shortens the payoff timeline.

Compare strategies

Click Compare Strategies. The calculator runs the snowball and avalanche methods side by side and tells you which finishes sooner and which costs less.

Why Extra Payments Compound

The reason a debt payoff plan works so well is that interest only accrues on the remaining balance. Every rand of extra payment shrinks that balance, which shrinks every future month of interest, which lets even more of the next payment go to principal.

An extra R1,000 per month against a 22% credit card balance does not just save R1,000 over the life of the loan. It can save several times that, because the interest you would have paid on that R1,000 every future month never accrues in the first place.

The same logic explains why dragging out the term is so expensive. Paying the minimum on a high-rate account stretches the principal across more months of interest charges, which is exactly the dynamic the calculator visualises in the "total interest" line.

Debt Context for South Africa

The National Credit Act caps interest rates on different categories of credit. Unsecured personal loans, credit facilities, and short-term credit each have their own ceilings, all linked to the repo rate. As of early 2026, unsecured loan rates can run as high as 27.75% per year under the NCA framework.

That matters for strategy choice. With rates that high on a meaningful balance, the avalanche method usually saves a lot in interest. The difference often runs into thousands of rand and several months sooner to debt-free, even if your minimums and extra payments stay the same.

If you genuinely cannot make your minimums, debt review under the NCA is a formal route worth considering. A debt counsellor restructures your repayments and protects you from legal action while the plan is in place. The calculator on this page assumes you can keep paying the minimums and want to optimise from there.

Common Mistakes to Avoid

Spreading the extra payment across every debt instead of one target debt at a time.
Stopping the minimums on other debts to free up cash, which triggers fees and damages your credit profile.
Adding new debt to the same accounts you are paying down.
Ignoring high-rate store accounts because the balances feel small.
Picking a strategy on a spreadsheet but never actually starting the extra payment.

The best plan is the one you stick to. If avalanche saves you a small amount but you know the early wins of snowball will keep you going, snowball is the right answer for you. The calculator gives you the numbers so the choice is informed, not the other way around.

Debt payoff FAQ

Snowball, avalanche, extra payments, and the NCA context behind South African debt.