Every term you need to understand on your journey to debt freedom — explained in plain English.
A debt payoff strategy where you pay off debts from highest interest rate to lowest, minimizing total interest paid.
Combining multiple debts into a single loan, ideally at a lower interest rate.
A debt payoff strategy where you pay off debts from smallest balance to largest, regardless of interest rate.
The projected month and year when you will have paid off all your debts, based on your current payment plan.
Your total monthly debt payments divided by your gross monthly income, expressed as a percentage.
Now that you know what DTI means, calculate yours. Use the free DTI calculator — see your debt-to-income ratio and what lenders see when they evaluate your finances.
DTI Calculator →Understanding assets and liabilities is one thing — seeing your actual net worth is another. Use the net worth calculator — enter everything you own and owe to get your real financial picture.
Net Worth Calculator →Now that you know what the debt avalanche means, run it on your actual balances. Use the avalanche payoff calculator — see your exact payoff timeline targeting highest-interest debt first.
Avalanche Calculator →Prefer the debt snowball? Put the definition into practice. Use the snowball calculator — see your debts cleared one by one in order of smallest balance, with a month-by-month timeline.
Snowball Calculator →Know what a balance transfer is — now see if one makes sense for your debt. Use the balance transfer calculator — enter your balance, rate, and payoff goal to see exact savings.
Balance Transfer Calculator →