Debt Payoff Planner (VND)
If you are living and working in Vietnam with several balances open at once — a credit card, a consumer loan, a car or instalment loan — the useful question is not whether to pay debt down but which one first and how much extra. This planner runs a month-by-month simulation across all your debts simultaneously: each month it pays the minimum on every debt, then directs one fixed extra payment at whichever debt your chosen strategy prioritises.
There are two classic strategies. Avalanche targets the highest interest rate first — the mathematically optimal route, because it kills your most expensive interest. Snowball targets the smallest balance first — psychologically optimal, because clearing a whole debt early builds momentum. With this page's illustrative figures (380.000.000 VND across three debts, 5.000.000 VND/month extra), avalanche wipes out the 30%/year credit card after month 9; snowball happens to clear the same debt first too, since it is both the smallest and the most expensive here.
The decision that actually moves the needle is the extra payment, not the strategy label. Paying only the minimums (12.000.000 VND/month) takes 4 years 3 months and costs 115.117.668 VND in interest. Adding 5.000.000 VND/month cuts that to 2 years 11 months and 71.388.945 VND of interest — a saving of 43.728.723 VND. Every rate on this page is an illustrative assumption, not a quote for any specific product; enter your real balances and rates to get a figure you can act on.
How the planner computes your payoff
Month-by-month simulation
Each month, for every debt with a remaining balance:
- Accrue interest = balance × (annual rate ÷ 12). A 30%/year card accrues 2.5% per month on the outstanding balance.
- Pay the minimum on that debt (capped at balance plus interest).
- Apply the fixed extra payment to remaining debts in the strategy's priority order. When one debt hits zero, leftover extra cascades to the next debt within the same month.
This repeats until every balance reaches zero. The KPIs shown are total interest paid, interest saved (versus minimums only), payoff time, and time saved.
Strategy ordering
| Strategy | Priority order | Rationale |
|---|---|---|
| Avalanche | Highest rate → lowest | Cut the most expensive interest first (cost-optimal) |
| Snowball | Smallest balance → largest | Clear a whole debt early (motivation-optimal) |
An honest note about this model
The tool reallocates only the fixed extra payment you set — it does not automatically roll a freed-up minimum into the next debt once a balance is cleared (this differs from a "textbook" snowball). The consequence: for the same extra payment, avalanche and snowball produce nearly identical total interest and payoff time in this calculator (a gap of just 0 VND and 0 months on the sample figures). So pick the strategy that fits your psychology, and to genuinely save more, raise the extra payment. If you manually roll each freed minimum into the next debt, your real-world result will beat the tool's number.
Limits
The model assumes a constant rate for the whole horizon and ignores late fees, annual card fees and early-repayment penalties on some loans. Treat the output as a planning scenario, not a contract.
Worked example: three debts, 5.000.000 VND/month extra (avalanche)
Illustrative assumptions — rates held constant, no penalty fees:
| Debt | Balance | Rate (assumed) | Minimum/month |
|---|---|---|---|
| Credit card | 60.000.000 | 30%/year | 3.000.000 |
| Consumer loan | 120.000.000 | 18%/year | 4.000.000 |
| Car loan | 200.000.000 | 11%/year | 5.000.000 |
| Total | 380.000.000 | — | 12.000.000 |
Avalanche throws the 5.000.000 VND extra at the 30% card first. Total balance and payoff order:
| Point in time | Total balance remaining | Cumulative interest paid |
|---|---|---|
| After 6 months | 305.333.924 | 27.333.924 |
| After 12 months | 231.188.352 | 46.188.352 |
| After 24 months | 95.489.625 | 66.489.625 |
| Debt-free (month 35) | 0 | 71.388.945 |
Payoff order: the credit card clears at month 9, the consumer loan at month 21, and the car loan at month 35 (2 years 11 months).
Extra payment vs minimums only
| Minimums only | Extra 5.000.000 VND/month | Difference | |
|---|---|---|---|
| Payoff time | 4 years 3 months | 2 years 11 months | 16 months sooner |
| Total interest | 115.117.668 | 71.388.945 | save 43.728.723 |
| Total amount paid | 495.117.668 | 451.388.945 | 43.728.723 less |
A single 5.000.000 VND extra each month shortens the journey by 16 months and keeps 43.728.723 VND that would otherwise vanish into interest. That is FiMo's core message: before debating avalanche versus snowball, find a way to lift the extra payment — even one or two million more makes an outsized dent in high-rate balances.
Frequently asked questions
What is the difference between the avalanche and snowball methods?
Avalanche sends your extra payment to the highest interest rate first, minimising total interest. Snowball sends it to the smallest balance first, clearing a whole debt early for motivation. Note: in this tool, because freed-up minimums are not auto-rolled, both strategies yield nearly the same total interest (a 0 VND gap in the example). Choose by psychology, and to actually save more, increase the extra payment.
Which debt should I pay off first?
Mathematically, the highest-rate debt (avalanche). Credit cards in Vietnam often run 25–40%/year — far more expensive than a car or mortgage loan — so clearing the card first is almost always right. In this page's example, avalanche wipes out the 30%/year card by month 9. If you need a quick win to stay motivated, the snowball method (smallest balance first) is a reasonable alternative.
How much can an extra monthly payment save me?
A lot, especially on high-rate debt. In the 380.000.000 VND example: minimums only take 4 years 3 months and cost 115.117.668 VND in interest; an extra 5.000.000 VND/month cuts that to 2 years 11 months and 71.388.945 VND — a saving of 43.728.723 VND and 16 months sooner. Enter your own numbers to see your figure.
How does the planner calculate interest on each debt?
Each month, a debt's interest = balance × (annual rate ÷ 12). A 30%/year card accrues 2.5% per month on its current balance. The tool subtracts the minimum payment, then applies your fixed extra payment to the priority debt, repeating monthly until everything is cleared. It assumes a constant rate and ignores penalty fees.
Why do avalanche and snowball give nearly identical results in this tool?
Because the tool only reallocates the fixed extra payment you set — it does not roll a freed-up minimum into the next debt once a balance is cleared. Since the total cash going in each month is the same under both strategies, total interest is almost equal (a 0 VND, 0-month gap). The difference is only the order debts clear. If you manually roll freed minimums forward, your real-world result will be better.
Should I use savings to pay off credit card debt?
Usually yes, as long as you keep a minimal emergency fund. Credit-card interest (assumed 30%/year) exceeds nearly any safe savings or investment return, so paying it off is effectively a risk-free "investment" yielding the card's rate. Keep 1–3 months of essential expenses, then direct the rest at high-rate debt first. See FiMo's emergency fund and DTI/LTI tools for the full picture.
Is consolidating multiple debts into one loan a good idea?
It can be, if the consolidation loan carries a materially lower effective rate (fees included) than the weighted average of your current debts, and you avoid taking on new debt afterward. Consolidation simplifies to one payment and one rate, but watch for arrangement fees, prepayment penalties, and a longer term that raises total interest. Use FiMo's debt-consolidation calculator to compare before deciding.