Both strategies finish eight months sooner, but avalanche saves more interest here. The MYR200 needs a recurring source in the household budget.
Hold the debts still and change the payment
Use Card MYR5,000 at 18% APR with MYR250 minimum, Personal MYR15,000 at 8% with MYR400 minimum, and Small MYR2,000 at 0% with MYR100 minimum. The baseline budget is MYR750. Add MYR200 every month, bringing the fixed budget to MYR950. Keep the month-one lump sum at zero.
This is a recurring commitment, not a one-time MYR200 gift. We assume no fresh purchases, rate changes, payment fees or missed months. Keeping those conditions unchanged isolates the effect of additional monthly cash and how each strategy directs it. Real statements can follow different daily-interest and minimum-payment rules.
Find the money before promising the saving
Suppose an original household worksheet shows MYR300 left after ordinary spending, required repayments and provisions for known annual bills. Allocating MYR200 leaves MYR100 unassigned. That arithmetic does not establish that MYR100 is enough for every setback; check the household’s own near-term obligations and income variability.
Do not fund the extra repayment by using another card for groceries. Nor should a yearly insurance bill disappear from the budget merely because it is not due this month. The MYR200 scenario is useful only if the transfer can continue without creating a replacement debt elsewhere.
Compare the total cost as well as the last month
Without extra cash, either strategy takes 34 months and MYR3,038.87 interest. With MYR200 extra, both finish in 26 months. Avalanche interest is MYR2,144.71 and snowball interest MYR2,353.85. The reductions from baseline are MYR894.16 and MYR685.02 respectively. Avalanche costs MYR209.14 less than snowball on these inputs.
An identical payoff month therefore does not imply identical cost. Payments near the end can differ, and the last payment is capped at the amount actually owed. Do not estimate total payments by multiplying MYR950 by 26; add the schedule’s actual payments instead.
| Monthly plan | Payoff time | Interest / saving against baseline |
|---|---|---|
| MYR750 baseline; both | 34 months | MYR3,038.87 / MYR0 |
| MYR950 avalanche | 26 months | MYR2,144.71 / MYR894.16 |
| MYR950 snowball | 26 months | MYR2,353.85 / MYR685.02 |
See where the first extra payment goes
Month one begins with MYR175 total interest in both paths because interest is charged before payments. Avalanche pays MYR450 to Card, MYR400 to Personal and MYR100 to Small. Snowball pays MYR250, MYR400 and MYR300 instead. Both spend MYR950 and finish that month with MYR21,225 total debt.
The different distribution changes later interest even though the first total balance matches. Avalanche removes more 18% principal earlier. Snowball closes a smaller balance sooner. Inspect the debt-level rows rather than inferring the allocation from the total payment. These are model mechanics, not a recommendation to ignore a contract.
Keep released payments inside the plan
The MYR950 budget stays fixed while balances remain. If a debt’s required amount becomes smaller than its minimum or disappears altogether, the unused money moves to the chosen target in the same monthly calculation. It does not become an assumed increase in household spending.
If your intention is to reduce repayments after the first closure, this schedule no longer describes that plan. Write the revised budget separately and recognise that the 26-month result depends on maintaining the original commitment. A projected saving is conditional on the cash actually arriving each month; the tool does not arrange payments with lenders.
Run a baseline and a funded extra-payment case
In the planner, recalculate the no-extra case, then change only extra monthly repayment to MYR200. Compare payoff months, total interest and the first debt-level payments. Keep the baseline and extra-payment scenario under distinct saved entries. The example book includes both, plus the separate bonus cases used in the next lesson.
Write down which budget line supplies the MYR200 and when to review it. If an unexpected expense makes it unaffordable, revisit the inputs and obligations promptly. A smaller sustainable addition can be more useful than treating an unfunded projection as an instruction.
The JSON download is a fictional example book for this tool only. Before importing, export a backup of your existing local book. Read the import preview, check the tool and entries, and confirm only if you intend to replace the current book; importing is not a merge. Keep your backup separately. The companion CSV is a manual comparison worksheet, not an import file. Downloads do not connect to your accounts or sync devices.
Download the example book and manual comparison
Put it into practice
Compare MYR0 and MYR200 extra while keeping all three debts unchanged.
Open the decision tool