Whiteout Debt

Debt Strategy Calculator
Debt-Snowball and Debt-Avalanche Combined

What is Whiteout debt ?

If you have credit cards and other types of loans and are looking for the best way to prioritize your debts, you should read this.

You may have researched the two common methods for repaying debts: debt-snowball and debt-avalanche. In case you are not familiar with them, I will briefly explain the difference. And I will explain how I have combined the two methods into a unified approach.


Debt-snowball is a debt reduction strategy in which debts with the lowest balance are repaid first. This method is preferred mainly as a psychological boost by seeing the sheer number of debts dwindle away.

You may be considering the debt-Snowball method due to its motivational factor. However, paying off a debt with a low balance may not be a good idea if the interest rate is exceptionally low.


Debt-avalanche is a debt reduction strategy in which debts with the highest interest rate are repaid first. Financially speaking, this is usually the best approach.

You may be considering the debt-Avalanche method due to its clear financial benefits. However, it may also be a good idea to pay off some smaller balances with a moderate to high interest rate.
Account Name: Account Balance: Interest Rate: Method:

Account Name Balance Interest Rate Monthly Interest

What if ?

What if the monthly interest is more than you were expecting? Then it's time to get a new lower interest rate. I know it's easier said than done but that's the best thing you can do. So, look into refinancing your home or maybe just a HELOC (home equity line of credit) and use the equity to pay off higher interest rate debt. You may also consider applying for a new credit card with a lower rate and transfer some higher interest rate debt to the new card. And don't focus on low introductory rates, pay attention to the actual interest rate for the life of the loan. Use the calculator below to see how much interest you would pay with a new lower rate.

Don’t be discouraged if you don’t agree with the results of this tool. Not everyone’s debt is identical so coming up with a single debt strategy that fits everyone’s situation is like buying a one-size fits all. But at least try to see why some debts are moved up in the list and others down in the list. In the end, choose the debt to pay off first that makes sense to you.

What if ? Account Balance: New Interest Rate: New Monthly Interest:

Snowball and Avalanche combined

Clearly one method is not better than the other or they would both not exist, and they would both not be debated. So, I have taken the best of both worlds and combined them into what I call Whiteout debt.

How it works

This tool allows you to input your debts and compare two different results. Regardless of which option you choose, the debt showing at the top of the list should be repaid first. Also, you can enter the line number in the Account Name box and delete a row.

Choosing Snowball does not simply sort your debts from the lowest to highest balance. It uses the Whiteout method but with only a preference toward paying the lowest balance first.

And likewise, choosing Avalanche does not just sort your interest rates from high to low but uses the Whiteout method with only a preference toward paying highest interest rates first.

Also, the totals at the bottom of the table provide you with some useful information. You are provided with the grand total, your effective average interest rate, and the approximate total monthly interest of all your debts.

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