Dimplo planning sheet
A payoff plan needs balances, rates, minimums, and a monthly amount you can actually repeat. This worksheet compares the two common payoff orders without pretending consolidation erases debt.
Interactive estimate
Debt payoff calculator
Use one debt at a time to estimate what a repeatable extra payment could change. This is an estimate, not a lender payoff quote.
Estimated result
--months to pay off
--estimated interest
--estimated debt-free month
Assumes a fixed APR, the same payment every month, no new borrowing, and no fees or rate changes. If your payment does not cover the monthly interest, contact the lender or a qualified nonprofit credit counselor before relying on a payoff plan.
1. Build the debt inventory
| Debt | Balance | APR | Minimum | Secured? | Current? |
|---|---|---|---|---|---|
| ________________ | $______ | ____% | $______ | Y / N | Y / N |
| ________________ | $______ | ____% | $______ | Y / N | Y / N |
| ________________ | $______ | ____% | $______ | Y / N | Y / N |
| ________________ | $______ | ____% | $______ | Y / N | Y / N |
| Totals | $______ | $______ |
2. Find the repeatable extra payment
Monthly take-home income $_______ minus essential bills and minimums $_______ minus small safety margin $_______ = repeatable extra payment $_______.
Do not use a one-time unusually good month as the permanent plan. Use windfalls separately.
3. Choose an order
| Method | Order | Best fit | Main tradeoff |
|---|---|---|---|
| Avalanche | Highest APR first | You want to minimize interest and can stay motivated through a longer first payoff | The first visible win may take longer |
| Snowball | Smallest balance first | Early account closures help you stay consistent | Total interest may be higher |
| Hybrid | Remove one small nuisance balance, then switch to highest APR | You need momentum but still care about interest cost | Requires one explicit transition point |
Worked example
Suppose a family has a $2,000 card at 24% APR, a $6,000 auto loan at 8%, and a $12,000 federal student loan at 5%. Minimum payments total $510 and the family can repeat an additional $250 payment.
- Avalanche: send the extra $250 to the 24% card while paying all other minimums.
- Snowball: the result starts the same because the card is also the smallest balance.
- After the card: roll its entire former payment into the next target instead of absorbing it into spending.
The important result is not the label. It is that the monthly payment grows as debts disappear and no minimum payment is missed.
4. Consolidation test
- □ The new APR is lower after introductory periods and fees.
- □ The payoff date is not extended so far that total interest rises.
- □ There is no collateral risk I do not understand.
- □ I have a plan that prevents the paid-off cards from refilling.
- □ The lender or counselor was verified independently.
5. Trouble-payment priority
If an account is already late, do not blindly follow avalanche order. Protect housing, utilities, transportation needed for work, insurance, and court-ordered obligations first. Contact creditors before a missed payment when possible and get hardship terms in writing.