How It Works: Your Path to Debt Freedom

At PlanMyDebt, we believe that getting out of debt shouldn't require a degree in finance. It requires a clear, mathematical plan.

Our free calculator is designed to take the confusion out of debt repayment. It analyses your balances, interest rates, and monthly payments to build a personalised, step-by-step roadmap to becoming debt-free.

Here is exactly how the tool works, step by step.

Add Your Debts

The first step is to face the numbers. You cannot build a strategy without knowing exactly what you owe.

In Step 1, you will enter the details of every unsecured debt you carry. For each debt, you need to provide three pieces of information:

The Balance: The total amount you currently owe.
The Interest Rate: The Annual Percentage Rate (APR) charged by your lender.
The Minimum Payment: The lowest amount your lender allows you to pay each month.

What to include: Credit cards, store cards, personal loans, bank overdrafts, car finance (PCP/HP), and Buy Now, Pay Later agreements.

What to exclude: Do not include your mortgage. This tool is designed for consumer debt where you have the flexibility to overpay and clear the balance early.

As you add your debts, the tool instantly calculates your Total Debt and your Monthly Minimums. It also reveals a crucial number: the estimated total interest you will pay if you only ever make the minimum payments. For many people, seeing this number is the wake-up call they need to take action.

Privacy Note

All data you enter stays entirely within your web browser. We do not store your financial information on our servers, and you do not need to create an account.

Choose Your Strategy

Once your debts are entered, you move to Step 2, where the mathematics takes over. The calculator will present you with two distinct payoff strategies: the Avalanche method and the Snowball method.

Both strategies require you to continue making the minimum payments on all your debts. The difference lies in where you direct any extra money you have available.

The Avalanche MethodRecommended for saving money

The Avalanche method targets your debts in order of their interest rates, from highest to lowest. By attacking the most expensive debt first, you minimise the amount of interest that compounds over time.

The Benefit: This is the mathematically optimal route. It will save you the most money and get you out of debt the fastest.
The Challenge: If your highest-interest debt is also your largest balance, it may take a long time to see your first debt completely cleared, which requires discipline.

The Snowball MethodRecommended for motivation

The Snowball method ignores interest rates entirely and targets your debts in order of their balances, from smallest to largest.

The Benefit: This strategy is built on human psychology. By clearing small debts quickly, you get immediate “quick wins” that build momentum and motivation.
The Challenge: Because you are not prioritising the highest interest rates, this method will cost you more in total interest over the lifetime of your debt.

Adding Extra Payments

In Step 2, you can also use the slider to see the impact of adding an Extra Monthly Payment. The tool will instantly recalculate your timeline, showing you exactly how many months you will save and how much interest you will avoid by overpaying. Even an extra £50 a month can shave years off your repayment schedule.

Your Personalised Plan

Once you select your strategy, the calculator generates your complete, personalised payoff plan. This is your roadmap to debt freedom.

Your plan includes:

Your Debt-Free Date: The exact month and year you will make your final payment.
Total Interest Paid: The true cost of your debt over the repayment period.
Balance Over Time Chart: A visual timeline showing your balances dropping to zero.
Payment Priority List: A clear, ranked list showing exactly which debt to target first, and when it will be cleared.
Monthly Payment Breakdown: Exactly how much you need to pay to each lender every month.

The Month-by-Month Schedule

At the bottom of your plan, you will find a detailed month-by-month schedule. This table breaks down your journey month by month, showing exactly how much of your payment goes toward the principal balance and how much is lost to interest.

Download Your Plan

You don't need to memorise the numbers. With one click, you can download your entire plan as a free, printable PDF. Pin it to your fridge, keep it on your desk, and use it to track your progress every single month.

Ready to take control?

Stop guessing and start planning. It takes less than two minutes to see your debt-free date.

Start Your Plan Now