Short answer
- List every debt with its balance, rate and minimum payment.
- Pay every minimum, send the extra to one debt; when it is gone, move that amount to the next.
- Avalanche: highest rate first (least interest). Snowball: smallest balance first (fastest first win).
- Take on no new debt during the plan and keep a small emergency fund.
Start with a debt inventory
The plan starts by seeing every debt in one table. For each debt write down:
| Debt | Balance | Monthly rate | Incl. taxes | Minimum / installment |
|---|---|---|---|---|
| Card A | ₺9,000 | 3.25% | 4.23% | 20% of balance |
| Card B | ₺42,000 | 3.75% | 4.88% | 20% of balance |
| Personal loan | ₺60,000 | 3.50% | 4.55% | ₺3,900 fixed installment |
| Total | ₺111,000 |
Card rates are from TCMB's September 2026 maximum contractual rate tiers (3.25% below ₺30,000; 3.75% between ₺30,000 and ₺180,000). The loan rate is an example. Rate including taxes = contractual rate x 1.3 (15% KKDF + 15% BSMV).
The avalanche method (rate first)
After paying the minimum on every debt, you send the extra money to the debt with the highest rate. When it is gone, you add what you were paying on it to the next highest-rate debt. Mathematically this costs the least interest, because the most expensive debt disappears soonest.
In the example the order is: Card B (4.88%), personal loan (4.55%), Card A (4.23%).
The snowball method (balance first)
You send the extra money to the debt with the smallest balance. The small debt closes quickly, its payment is added to the next debt, and the payment grows like a snowball. It can cost a little more interest, but the early win makes the plan easier to stick to.
In the example the order is: Card A (₺9,000), Card B (₺42,000), personal loan (₺60,000).
Comparing the two methods
We simulated both methods month by month for the three debts above, assuming ₺14,000 goes to debt each month:
| Avalanche | Snowball | |
|---|---|---|
| First debt cleared | Month 6 (Card B) | Month 4 (Card A) |
| All debts cleared | Month 11 | Month 11 |
| Total interest and taxes | ₺30,282 | ₺30,432 |
| Difference | Avalanche costs ₺150 less interest | |
Plan steps
- Make a debt inventory. Cards, loans, overdrafts, money owed to family; all in one table.
- Set aside a small emergency fund. One month of essential costs, so the plan does not break at the first surprise.
- Set a monthly debt budget. Subtract essential costs from income and put as much of the rest as possible toward debt.
- Choose the method. Avalanche or snowball; write down the order.
- Set up automatic payments. Do not miss minimums; late interest and a credit record break the plan.
- Take on no new debt. During the plan use cards only for what you can pay off in full, or not at all.
- Record progress every month. Seeing total debt fall keeps you motivated.
butce.app shows your cards, installments and loans in one dashboard; you can record early payments and restructuring on loans.
Try FreeManaging several debts at once
The more debts you have, the bigger the risk of missing a due date. Every card and loan has its own due date; miss one and late interest starts and a record goes on your credit report. Take these precautions:
- One calendar: Put every due date in a single calendar.
- Align due dates: You can ask your bank to move a card's due date to just after payday.
- Minimums automatic, extra by hand: Let minimums go out automatically and make extra payments deliberately.
- Look into restructuring: If the debt load has become unsustainable, talk to your bank about restructuring options; doing so before falling behind protects your credit score.
For card interest and minimum payments see how to track credit card debt, and for loan installments see loan installment calculation.
Frequently asked questions
Is snowball or avalanche better?
Mathematically the avalanche method, clearing the highest-rate debt first, costs less interest overall. The snowball method clears the smallest debt first and gives an early sense of success. When rates are close the difference is small and snowball can be chosen for motivation; when rates differ a lot, avalanche saves noticeably more.
What is the first step in a debt repayment plan?
Write every debt in one list: lender, remaining balance, monthly interest rate, minimum payment or installment and due date. Then decide the total you can put toward debt each month. That amount must be higher than the sum of all minimum payments.
Should I save while paying off debt?
First set aside a small emergency fund of one month's essential costs. A debt plan without a fund breaks at the first unexpected expense when you go back to the card. Once the small fund is in place, all extra money should go to debt.
Does it make sense to pay off card debt with a personal loan?
It can, if the loan's total cost (interest, KKDF, BSMV and fees) is lower than the cost of the card debt and you will not run the card up again. Compare the monthly cost of both debts in the same way, including taxes, before deciding.
Sources
butce.app Editör Ekibi
This guide was written by the team behind butce.app, a budgeting app for tracking income, expenses, card installments and loans. Figures were checked against the official sources listed above; the article was last reviewed on .
This content is general information, not investment, tax or legal advice. Rates change, so check the official source before you decide.
