Add your debts, set a monthly budget, and see exactly when you'll be debt-free. Compare Avalanche vs Snowball strategies.
Debt is a reality for most Indian households. From home loans and car loans to personal loans and credit card balances, the average urban Indian juggles multiple EMIs every month. According to the Reserve Bank of India, household debt in India has been growing steadily, and credit card outstanding balances crossed Rs 2.7 lakh crore in 2025. The key to managing debt effectively is not just making minimum payments — it is having a strategic plan to eliminate debt faster while minimizing interest costs.
Credit Card Debt: With interest rates ranging from 30% to 42% per annum, credit card debt is the most expensive form of borrowing. If you are only paying the minimum due (typically 5% of outstanding), it can take years to clear even a modest balance. Always prioritize paying off credit card debt first.
Personal Loans: Banks and NBFCs offer personal loans at 10-18% interest rates. These are commonly used for weddings, medical emergencies, home renovations, or debt consolidation. While the EMIs are fixed, prepayment can save significant interest — check your lender's prepayment charges.
Home Loans: India's most common long-term debt, with interest rates currently at 8-9.5%. With tenures of 15-30 years, even small additional payments can reduce your tenure by years. A Rs 50 lakh home loan at 8.5% for 20 years costs Rs 43.5 lakh in total interest — making partial prepayments when possible is highly recommended.
Education Loans: With rising tuition fees, especially for professional and overseas education, education loans at 8-12% interest are common. Section 80E provides unlimited tax deduction on interest paid, making this one of the more tax-friendly debts.
Our calculator lets you compare two proven debt payoff strategies. The Avalanche method targets the highest-interest debt first, saving you the most money overall. The Snowball method targets the smallest balance first, giving you quick wins and psychological momentum. Both are valid — the best method is the one you will stick with consistently. Enter your debts below to see exactly how each strategy plays out for your specific situation.
For more tips on managing debt and building financial health, read our personal finance blog or check your overall financial wellness with our Financial Health Calculator.
Pay minimum on all debts, then put extra money toward the debt with the highest interest rate. This method saves you the most money on interest overall.
Pay minimum on all debts, then put extra money toward the debt with the lowest balance. You pay off small debts quickly, building momentum and motivation.
