Snowball or avalanche payoff of cards and loans, in AED.
Debt-free in
—
Total interest
—
Total repaid
—
Worked example
Take two debts: a credit card of AED 20,000 at 36% with an AED 800 minimum, and a personal loan of AED 50,000 at 12% with an AED 1,200 minimum, plus AED 1,000 extra a month using the avalanche method. The combined balance is AED 70,000. The first month’s interest is 36% on 20,000 over 12, which is AED 600, plus 12% on 50,000 over 12, which is AED 500, so AED 1,100 of interest accrues. Your total payment is AED 3,000 a month, comfortably above that AED 1,100, so the balances fall. Avalanche pays both minimums every month and throws the AED 1,000 extra at the 36% card first because it is the most expensive. Once the card clears, its freed-up minimum and the extra roll onto the loan, accelerating it.
Debt
Rate
Avalanche priority
How it is calculated
Each month the tool accrues interest on every debt at its monthly rate, pays the minimum on each, then directs the extra payment plus any freed-up minimums to one target debt, cascading any overflow to the next. The avalanche method orders targets by interest rate, highest first, which clears the debt for the least total interest because the most expensive balance shrinks fastest. The snowball method orders by smallest balance first, which clears individual debts sooner and can feel more motivating even though it usually costs a little more interest overall. The calculator also guards against an impossible plan: if your total monthly payment does not cover the combined monthly interest, the balance grows and it reports that the debt never clears at that rate. UAE credit cards often carry very high rates, so the avalanche method and a meaningful extra payment usually make the biggest difference.
Frequently asked questions
Snowball or avalanche for UAE debt?
The avalanche method targets the highest interest rate first, which clears your debt for the least total interest. The snowball method targets the smallest balance first, which clears individual debts faster and can be more motivating. UAE credit cards often carry very high rates, so avalanche usually saves the most money, but either works if you keep paying the extra amount every month on top of the minimums.
What interest rates do UAE banks charge on credit cards?
UAE credit card annual percentage rates typically range from 24% to 42%, depending on the bank and card tier. The Central Bank of the UAE does not cap credit card interest rates, so rates vary widely between issuers. Checking your card statement for the actual annual rate before entering it into the calculator gives the most accurate payoff estimate.
Can I include both credit cards and personal loans together?
Yes. The calculator accepts up to three debts of any type, whether credit cards, personal loans, or buy-now-pay-later balances. Enter the current outstanding balance, the annual interest rate, and the required minimum monthly payment for each one. The tool then runs the chosen payoff method across all debts simultaneously, cascading freed-up payments from cleared debts onto the remaining ones.
Does the UAE have any debt relief or restructuring programs?
The UAE Central Bank operates a Deferred Payment Programme for eligible retail banking customers facing genuine financial hardship. Banks are also required to offer repayment plans before pursuing legal action. If your total payment does not cover your combined monthly interest, contacting your bank to negotiate a restructured repayment schedule is strongly recommended before the situation worsens.