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Lesson 4 of 8 · 16 min

Planning debt repayment with real numbers

Turn avalanche and snowball from ideas into a month-by-month plan, and see exactly what extra payments save.

In this lesson you will

  • Build a complete debt table with balances, rates and minimums
  • Compare avalanche and snowball with a worked example
  • Measure the effect of extra monthly payments
  • Understand when consolidation or balance transfers are worth investigating

Education, not advice. This lesson explains general ideas and does not consider your personal situation.

From strategy to plan

In Level 1 you met two repayment strategies. Here we put real numbers on them, because seeing the months and the money makes the plan much easier to follow.

The example

Three debts, an extra $200 a month available on top of the minimums:

Debt Balance APR Minimum
Card A $2,500 24% $75
Card B $900 18% $30
Car loan $4,000 9% $120

Level 2: Budgeting & Cash Flow

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  1. 1Your cash-flow calendar14 min · Free
  2. 2Budgeting on irregular income15 min
  3. 3A savings system that runs itself13 min
  4. 4Planning debt repayment with real numbers16 min
  5. 5Understanding credit reports and scores13 min
  6. 6Insurance explained: compare cover, not just price14 min
  7. 7Sharing costs fairly: couples, housemates and families12 min
  8. 8The annual money review13 min

Budash Academy and the Budash blog are for general education only. They are not financial, investment, tax or legal advice, and they do not take your personal circumstances into account. For advice, speak to a qualified, regulated professional.