Take three debts: 6,000 euro at 18% with a 150 euro minimum, 3,000 euro at 9% with an 80 euro minimum, and 1,200 euro at 22% with a 40 euro minimum, plus 200 euro of extra payment a month. The avalanche method throws the extra 200 euro at the highest rate first, so it targets the 22% card, then the 18% debt, then the 9% one. It clears everything in about 31 months and costs roughly 1,916 euro in interest. The snowball method instead targets the smallest balance first, the 1,200 euro debt, for quicker wins. It takes about 32 months and costs roughly 2,280 euro in interest. On these debts avalanche saves about 364 euro and finishes a month sooner, the usual pattern when the highest rate is not also the smallest balance.
How it is calculated
The tool simulates your debts month by month. Each month it adds the interest accrued on every balance at one twelfth of the APR, pays the minimum on each debt, then directs all of your extra payment to a single target debt. The target is chosen once from the start: under avalanche it is the debt with the highest APR, and under snowball it is the one with the smallest balance, and once that debt clears the extra rolls to the next in line. It repeats until every balance is zero, tallying the months and the total interest along the way. Avalanche minimises interest because it always attacks the most expensive debt, so in pure euro terms it usually wins. Snowball clears individual debts sooner, which many people find more motivating. Running both on the same debts lets you weigh the interest difference against the behavioural payoff and pick the approach you will actually stick with.
Frequently asked questions
Snowball or avalanche, which is better?
Avalanche targets the highest APR debt first, so it minimises total interest and usually clears debt fastest in pure euro terms. Snowball targets the smallest balance first, clearing individual debts sooner for motivation. This tool runs both on the same debts and extra payment, so you can see the interest difference and decide which trade-off suits you.
Is interest on personal loans tax-deductible in Ireland?
Generally no. Revenue does not allow a deduction for interest paid on personal consumer loans or credit cards. The main exception is mortgage interest relief, which applies to qualifying home loans under the rules set out by Revenue. Business borrowing used wholly for a trade may qualify for relief under section 97 or section 81 of the Taxes Consolidation Act 1997, but personal debt does not attract any income tax relief.
What APR should I expect on Irish credit cards and personal loans in 2025 and 2026?
Credit card APRs in Ireland typically run between 15% and 23% for standard cards, with some store cards and subprime products above 25%. Personal loan APRs from retail banks range from around 7% to 15% depending on the term and the lender. Credit union loans are often cheaper, sometimes from 5% to 10%. The Central Bank of Ireland publishes indicative retail interest rate statistics on its website if you want to check current market averages before committing to a product.
Can I overpay or make lump-sum payments on loans in Ireland?
It depends on the loan agreement. Most Irish personal loans allow overpayments, but some fixed-rate products charge an early repayment fee if you clear the balance before the agreed term ends. The Consumer Credit Act 1995 and the Central Bank Consumer Protection Code give you the right to early repayment, but a lender can charge a fee to cover its funding costs. Check your credit agreement or ask your lender before making a large lump-sum payment, especially on fixed-rate car finance or personal loans drawn down at a fixed rate.