ent, utilities, food, and essential medi
Ask
ent, utilities, food, and essential medications are completely covered by my baseline paycheck.
I have $450 total monthly budget allocated strictly for debt repayment across two balances:
1. Credit Card: $4,200 balance at 26.9% AP (minimum payment is $130)
2. Personal Loan: $1,800 balance at 11.5% AP (minimum payment is $75)
Can you show me the exact payoff comparison between Avalanche and Snowball strategies—specifically the total months to debt-free and total interest paid for each—so my partner and I can decide whether to prioritize clearing the loan first or saving on interest?
Answer
I'll run the comparison with your figures before any numbers go into the reply.
ent, utilities, food, and essential medications are covered, so this is a repayment comparison, not a crisis ladder. Minimums total $205 ($130 + $75), leaving $245 of extra each month inside the $450 budget you named.
| Strategy | Extra goes first | Months | Total interest |
| --- | --- | --- | --- |
| Avalanche | Credit Card 26.9% | 16 | 886.50 USD |
| Snowball | Personal Loan 1,800 | 16 | 1,100.63 USD |
**What each route buys you**
- **Avalanche** — extra goes to the Credit Card first because of the higher AP. Total interest is lower by **214.13 USD**, but you carry both balances the full 16 months.
- **Snowball** — extra goes to the Personal Loan first because the balance is smaller. The loan is gone in month 6, but the Credit Card keeps accruing at 26.9% for the rest of the run, so total interest is higher.
Both finish in the same 16 months. The difference is cash-out vs. one balance cleared sooner.
Source: this turn's `payoff.py` ok:true stdout; monthly compounding assumed, model not prediction.
I won't pick for you. "Save interest" → Avalanche. "Clear a balance first" → Snowball.