Take three debts: RM10,000 at 18 percent with a RM300 minimum, RM5,000 at 8 percent with a RM150 minimum, and RM2,000 at 22 percent with an RM80 minimum, plus RM400 extra to throw at one debt each month. Under avalanche the extra goes to the 22 percent debt first, since it costs the most, then rolls to the 18 percent and finally the 8 percent. That clears everything in about 25 months with roughly RM2,520 of total interest. Under snowball the extra goes to the smallest balance first for quick wins, which clears in about 26 months and costs roughly RM2,975 in interest. Avalanche saves about RM455 here and finishes a month sooner, because targeting the highest rate removes the most expensive interest first. Snowball trades that for the motivation of clearing whole debts faster.
Method
Months
Interest (RM)
Avalanche (highest rate first)
25
2,520
Snowball (smallest balance first)
26
2,975
Saved with avalanche
1 month
455
How it is calculated
The tool simulates repayment month by month. Each month interest accrues on every balance at one twelfth of its annual rate, the minimum payment is taken from each debt, and then the extra payment is applied to a single target debt. Avalanche targets the highest interest rate first, while snowball targets the smallest balance first. When a debt clears, its freed-up minimum and the extra cascade onto the next debt in the chosen order, which is why later debts fall quickly. The model runs both strategies on the same debts and the same extra payment, reports months to clear and total interest for each, and shows the interest saved by avalanche. Avalanche is almost always cheaper in ringgit, but snowball can be easier to stick with, so the right choice depends on whether cost or momentum matters more to you.
Frequently asked questions
Snowball or avalanche, which clears debt cheaper?
Avalanche targets the highest-rate debt first, so it minimises total interest and usually clears debt soonest in ringgit terms. Snowball targets the smallest balance first, clearing whole debts quickly for momentum and motivation. This tool runs both on the same debts and the same extra monthly payment, so you can see the interest gap and pick the trade-off that suits you.
Does CTOS or CCRIS score improve when I pay off debts?
Yes. Both CTOS and CCRIS track your outstanding balances and payment history. Paying off a debt fully removes that liability from your CCRIS report after the lender updates it, typically within one to two months. Consistent on-time payments are the strongest driver of a healthy score, so even a modest extra payment each month helps over time.
Can I use this calculator for PTPTN student loan repayment?
Yes, you can enter your PTPTN outstanding balance, the flat rate (currently 1 percent per year for regular repayment), and your current monthly payment. PTPTN uses a flat interest model rather than compound interest, so the total interest figure will be a close approximation rather than exact. Use it to compare how a larger monthly payment shortens your repayment period and reduces overall cost.
How do I handle credit card debt alongside a personal loan in Malaysia?
Enter each debt separately with its own balance, rate, and minimum payment. Malaysian credit cards typically charge between 15 and 18 percent per year, while personal loans from banks or cooperatives (Koperasi) range from around 4 to 12 percent. Avalanche will direct your extra ringgit at the credit card first in most cases, which is usually the right call since credit card rates are often double those of personal loans.