Watch your debt disappear as you adjust your payments
The single most powerful thing you can do is add extra payments — even small ones. An extra $100/month on a $25,000 credit card at 18.5% saves you over $8,000 in interest and cuts years off your payoff date. Use the "Extra Payment" slider above to see the exact impact on your specific debt.
Avalanche method: Pay off highest interest rate first. Mathematically optimal — saves the most money. Use this if you are disciplined and motivated by numbers.
Snowball method: Pay off smallest balance first. Psychologically powerful — quick wins build momentum. Use this if you need early victories to stay motivated. Read the Debt Death Ray approach for turning debt payments into wealth building.
Once your debt hits zero, every dollar that was going to payments becomes investment fuel. If you were paying $500/month toward debt, that same $500 invested at 7% becomes $86,500 in 10 years. The net worth calculator shows you this transition — how debt payoff accelerates into wealth building.
Your freed-up cash should go into tax-advantaged accounts: TFSA, RRSP, or FHSA depending on your situation. Check the Canadian money cheat sheet for current contribution limits and the tax deductions guide if you are self-employed.
Next steps: Project your net worth after debt payoff. Read why you need a FHSA for your next savings goal. See all free financial tools.