THE MITEY FIELD NOTES
Compare debt payoff plans on equal terms
Use the same balances, rates and total budget to compare avalanche, snowball and consolidation scenarios.
The short answer
Hold the total monthly budget constant when comparing payoff order. Avalanche targets the highest rate after minimums; snowball targets the smallest balance. A consolidation comparison also needs fees, the new term and the security required.
01 / A CLOSER LOOK
Build an honest starting list.
Enter each balance and rate, then the fixed minimum amount you intend to pay. A percentage-based lender minimum can change over time; this model deliberately uses fixed entered minimums. New spending, late fees and rate changes are excluded, so a real statement may follow a different path.
The monthly budget must cover the modeled minimum obligations and reduce the debt. An amount that does not amortize a balance is not silently given a payoff date. If a plan is rejected, examine the figures and payment requirements rather than treating a very distant date as reassurance.
02 / A CLOSER LOOK
Keep freed payments in the budget.
When a debt is paid off, its allocation is redirected to the remaining debt. Both strategies keep the same total monthly budget. Reducing spending on repayment after clearing an account changes the question and would usually extend the plan.
Compare total interest, the payoff period and the ability to sustain the budget. Motivation and cash-flow reliability are personal factors that the arithmetic does not score. The tool does not negotiate debt, predict credit scores or assess the suitability of a specific financial product.
03 / A CLOSER LOOK
Treat consolidation as a new cost schedule.
A consolidation loan can lower a monthly payment by lengthening repayment. Enter a full term and any up-front fees; compare total modeled interest and fees rather than assuming the lower payment is a saving. Our calculation keeps the principal equal and pays fees in cash.
If an actual offer changes the security, adds debt or finances the fees, its risk and cost differ from that simple comparison. Confirm contract terms, and consider what happens if the freed account is used again. Preserve the assumptions with the result so the comparison can be reproduced.
Sources and scope
The source provides context for the subject. The worked models are MITEY implementations described on their own pages. This guide does not assess personal eligibility or recommend a product. Report a correction.