Create a Debt Payoff Calculator (Snowball vs Avalanche)
3. Calculators & Personal Finance Tools
⏱ 25 minutes min
📊 Intermediate
Objective
Compare two popular debt payoff strategies and build a simple payoff timeline.
Materials Needed
- AI chat tool
- List of debts with balances, interest rates, and minimum payments (real or example)
Step-by-Step Instructions
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1
List your debts (or use example debts) with balance, interest rate, and minimum payment.
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2
Prompt: 'Explain the debt snowball and debt avalanche methods, then apply both to this list of debts.'
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3
Ask the AI to show which method pays off debt faster and which saves more in interest.
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4
Ask for a month-by-month payoff order based on the method you prefer.
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5
Ask the AI to build this as a simple spreadsheet table.
Instructor TipThis is a good moment to remind students AI cannot give personalized financial advice — it's explaining concepts and math, not replacing a financial advisor.
TakeawayUnderstanding the tradeoff between snowball and avalanche helps you pick a payoff strategy that actually fits your motivation style.
Tools Used
- ChatGPT
- Claude.ai