Snowball Calculator
Do you carry a balance on more than one credit card? This
calculator will show you how to apportion your payments to each
card. You will get out of debt sooner and minimize the amount of
interest that you pay.
Think of interest rates as the cost of borrowing money
over time. It makes the most sense intuitively to pay off the
most expensive card, or highest-rate, first. If you carry
balances on more than one credit card, you should pay the
minimums on every card, except the card with
the highest interest rate. You should focus your extra payments
on the card with the highest interest rate. Once you completely
pay off your highest rate card, you redirect the extra payment to
the card with the next highest interest rate, and so on. As you
pay off your cards, your payment to the highest rate card
builds up, or “snowballs,” until you send the entire monthly payment
to the last card remaining.
Let’s say you have three credit cards: Card A with a $5,000 balance
at 20%, Card B with $15,000 balance at 10%, and Card C with a
$10,000 balance at 5%. Let’s also say that you have $1,000 a month
you can use to pay off your debts. You pay the minimum
amount due for Cards B & C, which is $300 and $200 respectively. You
pay the remaining $500 to Card A, because it has the highest
interest rate. Once you pay off Card A, you redirect the extra
money to Card B, which has the next highest interest rate. Now you
pay the minimum for Card C and the rest of the $1,000 to Card B. When
you pay off Card B, you send the entire $1,000 to Card C. If that
doesn’t make any sense, just play with the calculator to see
what I mean! 
Alright, let’s get started! Before you begin, make sure you have the most recent credit card statement for each of your credit cards nearby. Once you have your statements ready, please select the number of credit cards that you would like to analyze:
