Text Analysis & GenerationPersonal DevelopmentFinance

Debt Paydown Strategy (Snowball vs Avalanche)

Compare snowball and avalanche, verify budget covers minimums and propose gap fixes, output payoff order, months and interest estimates, recommendation and action steps from debts.

Prompt Content

Create a concise payoff strategy that compares the debt snowball and avalanche methods and recommends the best choice. Use this input: Debt list: <debt-list> Debt List </debt-list> Monthly debt budget (total you can pay toward these debts, including minimums): Monthly Debt Budget Follow these steps and output using the exact numbered headers below. 1. Inputs Parsed - List each debt as: Name | Balance | APR% | Minimum - Total minimum payments: $X 2. Feasibility - State whether the budget covers total minimums and the dollar gap if any. - If budget < total minimums, give 2-3 practical ways to close the gap; then run the comparison assuming budget = total minimums (no extra). 3. Snowball - Order: lowest balance → highest - Show: payoff order, estimated months to debt-free, estimated total interest (monthly compounding APR/12, minimums to non-target debts, all remaining budget to target, roll freed payments as debts close) 4. Avalanche - Order: highest APR → lowest - Show: payoff order, estimated months to debt-free, estimated total interest (same modeling rules) 5. Comparison - One line on which is faster (months). - One line on which costs less interest and by how much. 6. Recommendation - Choose a method with a brief reason (1-2 sentences). - List the first three action steps to start (e.g., automatic payments, target debt this month, review date). Constraints • Plain, concise language; no motivational fluff. • USD by default; round dollars to nearest whole. • Do not alter input balances, APRs, or minimums. <example> Debt list (one per line): Card A | 3500 | 19.99% | 90 Auto Loan | 12000 | 6.5% | 310 Card B | 800 | 24.99% | 35 Monthly debt budget: 1200 </example>

Variables

Debt List: One debt per line: Name | Balance | APR% | Minimum payment; Example: Card A | 3500 | 19.99% | 90 Auto Loan | 12000 | 6.5% | 310 Card B | 800 | 24.99% | 35
Monthly Debt Budget: Total amount you can pay toward these debts each month (including minimums); Example: 1200