Free Snowball Debt Calculator
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Are you looking for a way to clear your debts? You’ve come to the right place. Each month, over 170,000 people visit our website looking for guidance on debt solutions.
In this article, we’ll show you:
- The basics of using a Snowball Debt Calculator in the UK.
- How the snowball debt method can help you pay off your debts, starting from the smallest.
- How to decide if the snowball or avalanche method is best for you.
- Answers to common questions about the snowball debt method.
- How to find help if your debt feels too much to handle.
We understand that having many debts can be worrying. It can feel like a big, cold snowball getting bigger and bigger.
But don’t worry — our team knows what it’s like to feel chased by debt. With our experience, we’ll help you find new ways to deal with debt.
Snowball debt calculator UK – best version
A quick search online will bring up all sorts of different snowball debt calculators that you might be able to use.
Many of these online debt calculators are purely directed towards North American users.
So, I have created one that is for UK residents in terms of currency, interest rate calculations, or the legal regulations related to your debts.
Simply input the relevant information, and let my calculator do the hard work for you.
Snowball Debt Calculator UK– the basics
What is this snowball debt, you might be asking. And to add to that, what is a snowball debt calculator?
The snowball debt method is a way of paying off your debts methodically if you have multiple debts to settle.
And a snowball debt calculator can help you determine how long it could take to pay off all your debt. Use this financial planning tool to calculate your debts so you can pay down your balances quickly.
The snowball debt method
The snowball debt method is a debt reduction strategy where you pay off your debt from the smallest debt all the way up to the largest debt.
You start off by making sure you pay the minimum amount across all your debts, and pay as much as you possibly can on your smallest, repeating this until each debt is paid in full.
It’s a great way of gaining momentum as you make your way through each debt, as when the smallest debt is paid in full, you roll that money you were using to pay off that debt onto the next smallest debt.
Just like a snowball, rolling it in the snow to make it bigger and bigger.
Here’s how to use the debt snowball method to tackle your debt:
- List your debts from smallest to largest.
- Throw as much money as you can at that smallest debt. Once that debt is gone, take its payment and apply it to the next smallest debt. Meanwhile, you should continue to make minimum payments on your other debts.
- Repeat this method as you weed your way through the rest of your debt. Make an effort to pay off more each time, as this will allow you to eliminate that debt faster and save more for your next payment.
» TAKE ACTION NOW: Fill out the short debt form
Speaking of saving, you might be thinking: doesn’t paying off the debt with the highest interest rate first help me save more?
Sure, that method (known as debt avalanche) might help you save in the long-run – mathematically speaking.
But here’s the thing: Personal finance is 80% behaviour and only 20% head knowledge. Just because it makes the most sense on paper, doesn’t mean you’ll actually stick to it.
It’s vital you pay your debts in a way that keeps you motivated until you’ve eliminated them all.
If you start with the biggest debt, it will take longer to clear the debt. You’re more likely to lose steam and give up since you won’t feel like you’re making any progress.
Nobody wants that!
The main idea of a debt snowball is to give you the momentum and motivation to knock out other debts based on the quick wins you get in the beginning.
It is also one of the fastest way to become debt-free.
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Situation
| Monthly income | £2,504 |
| Monthly expenses | £2,345 |
| Total debt | £32,049 |
Monthly debt repayments
| Before | £587 |
| After | £158 |
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
The Snowball Debt Calculator UK
So now we know what the snowball debt method is. But what is the Snowball Debt Calculator UK?
Basically, a snowball debt calculator allows you to type in all the information about your debts.
It will then tell you just how much time and money you could save by paying off your debts with the debt snowball method.
It takes into account the size of your debts, their interest rates, and the amount you can afford to pay each month, helping you to figure out a strategy for paying off your debts based on the snowball method.
In other words, it will work out the order in which you should pay them off together using monthly payments.
Frequently Asked Questions About Snowball Debt Method
