How to use the UK debt calculator
- Under Your debts, enter each credit card, store card, overdraft or loan with its Balance, APR and Minimum payment. Use Add a debt for more rows and the bin icon to remove one. Your list is saved in this browser so you can come back to it.
- Enter the Total you can pay each month across all your debts. It must be at least the total of the minimum payments.
- Choose Avalanche or Snowball. The table below the result always shows both, plus what happens if you pay only the minimums.
- Read your debt-free date, the total interest and the interest saved, then follow the Payoff order and the Month-by-month timeline. Copy results saves a summary.
How the plan is worked out
Each month the calculator adds a month of interest to every debt (its APR divided by 12), pays the minimum on every debt, and then puts all the money left in your budget towards one target debt. When the target is cleared, its minimum payment and the extra money roll on to the next debt in line. That roll-over is what makes a structured plan so much faster than paying minimums on everything.
- Avalanche targets the debt with the highest APR first. Mathematically it costs the least interest, often by a small margin.
- Snowball targets the smallest balance first. You clear whole debts sooner, which many people find keeps them going, at the cost of a little more interest when the smallest debt is not also the most expensive.
- Minimum payments only pays each debt its own minimum with no roll-over. It is the slowest and most expensive way to clear debt, and with a payment that does not cover the interest a balance never goes down.
Worked example
Say you owe £3,200 on a credit card at 24.9% APR (minimum £96), £850 on a store card at 29.9% (minimum £25), £1,200 on an overdraft at 39.9% (minimum £50) and £6,000 on a personal loan at 8.9% (repayment £190). That is £11,250 in total with £361 of minimum payments. With a budget of £500 a month:
- Avalanche clears the overdraft in month 8, the store card in month 12, the credit card in month 22 and the loan in month 27. You are debt-free in 2 years and 3 months and pay about £2,198 in interest.
- Snowball clears the store card first, in month 6, and takes 28 months with about £2,264 of interest, so here avalanche saves about £67 and one month.
- Paying only the minimums, with no roll-over, would take 6 years and 5 months (the store card is the last to go) and cost about £5,465 in interest. The £500 plan saves about £3,267 and over four years.
Tips for paying off debt faster
- Stop adding to the balances. The plan assumes no new spending on the cards or overdraft.
- Look at cheaper rates. A 0% balance transfer card or a lower-rate loan can cut the interest, but check the fees and what the rate becomes afterwards. Use the UK loan calculator to see the cost of a consolidation loan.
- Find extra money for the budget. Even £25 more a month brings the debt-free date forward. Check what you really take home with the UK salary calculator.
- Deal with priority bills first. Rent or mortgage, council tax and energy come before credit cards. If you cannot cover everything, get free debt advice before missing payments.
Paying off your mortgage early instead? Try the overpayment options in the UK mortgage calculator, or browse all salary and money calculators.
Frequently asked questions
Is the avalanche or snowball method better?
Avalanche (highest APR first) always costs the same or less interest. Snowball (smallest balance first) gives quicker wins. If the difference in the table above is small, choose the method you are most likely to stick with.
How long will it take to pay off my credit card?
It depends on the balance, the APR and what you pay each month. Enter the card as a single debt and set the monthly budget to what you can pay; the calculator shows the month it is cleared and the interest you pay.
Why does paying the minimum take so long?
Most of a minimum payment goes on interest, so the balance falls slowly. Card minimums are often a small percentage of the balance, so they shrink as the balance falls and stretch the term even further.
Should I include my overdraft?
Yes. Arranged overdrafts often charge a high APR. There is usually no set minimum payment, so enter the amount you plan to pay into it each month as its minimum.
Where can I get free debt advice in the UK?
Debt charities and government-funded advice services give free, confidential help online, by phone and in person. They can help you prioritise bills and talk to lenders. You should never pay for debt advice.
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