£
Debt-Free Timeline
18 Months
Total Debt Remaining
£12,500
Interest Saved
£1,420
Total Interest Paid
£850
Monthly Commitment
£600
Months Saved
14 Mos
Effective APR
16.4%
Balance Amortisation
Avalanche Strategy
M0 M18

About the Debt Payoff Engine

This engine structures optimal repayment schedules across multiple liabilities. By cascading available excess monthly cash flow into specific debts, it minimises interest drag and compresses total repayment time.

Debt Avalanche Method

Prioritises debts by highest interest rate (APR) first while paying minimums on others. Mathematically optimal for minimising total interest paid when all other assumptions remain equal.

Debt Snowball Method

Prioritises debts by smallest total balance first. While this can result in more interest than Avalanche, it produces rapid psychological wins by eliminating individual debt accounts quickly.

Payment Cascading

Once a liability is cleared, its minimum payment is immediately released into the available repayment pool and cascades into the next target liability.

Model Assumptions & Limitations

Calculations assume fixed interest rates and consistent monthly contributions. The engine does not account for variable APR increases, late payment fees, or potential balance transfer conditions. Results are for planning purposes and do not constitute formal financial counselling.

Verified for UK Amortisation Standards 2026 View Full Methodology & Calculations →