GuidesDebt1 min
Debts you already owe · Lesson 7 of 11
Extra money is split by the minimums
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An extra monthly amount is shared across debts in proportion to each minimum payment. It is not sent entirely to the highest rate.
The split
Add up the minimums on debts that have a balance. Each debt’s share of the extra is the extra times its minimum divided by that sum. A debt with twice the minimum receives twice the extra.
The payment used for its payoff is its minimum plus that share. Interest and the date are recomputed from that payment.
This is not avalanche targeting
Avalanche would put the entire extra on the highest rate. This calculator does not do that. The notes in the debt screen may mention avalanche as an idea. The dollars move with the minimums.
If you want to imitate avalanche, raise the minimum on the high-rate row by the extra, and leave the extra field at zero. Then the other rows stay on their old minimums.
Zero extra
An extra of zero leaves every debt on its own minimum. That is the right setting when you are only listing what you already pay.
The interest saved by the extra is the difference between the two pictures: minimums alone, and minimums plus the split extra.
This explains how WiseCalculator treats the numbers you type. It is not a lender’s offer and it is not advice for your loan.
More in Debt
- Interest with and without an extra paymentThe debt screen compares interest and time at your minimums with interest and time after the extra is split.
- A credit card balance and rateType the balance you owe, the purchase APR as a yearly percent, and the minimum the statement asks for.
- A personal loan beside the cardsA personal loan is another row: balance, rate, and the fixed payment. It shares the extra payment by the size of that payment.