Which debt do I pay off first?
Student loan, credit card, or car loan? Rank all three by the avalanche method — with the federal student loan exception that most payoff calculators miss.
Your payoff order
How payoff priority works
The avalanche method is simple: pay the minimum on everything, then throw every extra dollar at the highest interest rate. That order costs the least interest overall. The calculator follows it — with one deliberate exception.
The exception is a federal student loan on an income-driven plan, or one headed for forgiveness. Its payment is already capped by your income, and the balance may be forgiven after 20 or 30 years. Extra money sent there often just replaces dollars that would have been forgiven anyway, so it goes last. A private student loan gets no such exception: it has no income-driven plan and no forgiveness, so it is ranked by its rate like any other debt.
When one debt is paid off, its minimum payment rolls into the next debt on the list. That snowballing is what makes the debt-free date move up so fast — the calculator shows the date with the extra money and, for comparison, the interest you would pay on minimums alone.
Frequently asked questions
Should I really pay the credit card before the student loan?
Yes, almost always. Credit card APRs are usually 20% or higher, while federal student loans are around 6–7%. Every dollar of extra payment kills more interest on the card. The one exception: if you are behind on a payment, catch up on that one first — late fees and credit damage cost more than interest.
Why does my federal student loan go last?
Because the payment is already capped by your income, and the remaining balance may be forgiven after 20 or 30 years. Extra money sent to that loan often just replaces dollars the government would eventually have forgiven. The same dollar sent to a 24% credit card saves 24 cents a year, every year.
Does the same rule apply to private student loans?
No — a private student loan has no income-driven plan and no federal forgiveness, so it is treated like any other debt and ranked by its interest rate. Only federal loans get the last-place exception, and only when forgiveness or income-driven repayment is actually in play.
What is the avalanche method?
The avalanche method — highest interest rate first — costs the least interest overall. The snowball method — smallest balance first — can feel better because you close accounts sooner. This calculator uses the avalanche order, because with three different kinds of debt the interest gap is usually large.
How accurate is the debt-free date?
It is an estimate. The simulation assumes your rates and minimums stay the same and that you keep paying the extra amount every month. Real servicers can change minimums, and variable-rate private loans can move.
Where to go next
Credit Card Payoff Tools
Build a detailed card payoff plan: snowball vs avalanche, balance transfers, and how much extra to pay.
Visit →Car Affordability Tools
See what the car itself really costs each month — payment, insurance, fuel, and maintenance — before you commit to a bigger car loan.
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