Make a plan to pay off debt

beginner⏱ Rough guide only: 30 minutes to set up

Last reviewed by Amara Lewis

How can AI help me pay off debt?

List your debts, interest rates and minimum payments in ChatGPT or Claude, say what you can afford monthly, and ask it to compare the avalanche and snowball methods with a payment table. It's a useful planning aid, not advice – free regulated debt services can help further.

Copy-and-paste prompt

Swap the bits in [square brackets] for your own details.

Help me make a plan to pay off my debts. Here they are (no account numbers): [debt name, balance, interest rate, minimum payment]. I can afford [amount and currency] a month in total. Compare the 'avalanche' (highest interest first) and 'snowball' (smallest balance first) methods for me, show a month-by-month table, and list free debt-advice services in [country].

How to do it

  1. Open ChatGPT or Claude and start a new chat.
  2. Copy the prompt below and replace everything in [square brackets] with your details.
  3. Read the answer and ask follow-up questions to adjust it.
  4. Check anything important yourself, then save or print the result.

What a good answer looks like

Illustrative example written by the AI My Day team to show the kind of answer you can expect. Real results vary.

Your debts (highest interest first) 1. Store card – £600 at 29.9% 2. Credit card – £1,800 at 24.9% 3. Car loan – £4,200 at 7.9% Avalanche plan (£300/month total): pay minimums on all, put everything extra on the store card. When it's cleared, roll that payment onto the credit card, then the car loan. Snowball plan: smallest balance first – here that's also the store card, so both methods start the same way. Next step: check these figures against your latest statements before you commit.

Recommended tools

Both can lay out avalanche and snowball plans clearly and do the arithmetic.

ChatGPT

A general-purpose AI assistant you can chat to by typing, talking or sharing photos.

Free planbeginner

Claude

An AI assistant known for clear, natural writing and handling long documents.

Free planbeginner

Top tips

  • Never paste account numbers or passwords.
  • If you're struggling with essentials, contact a free debt-advice service first.

Frequently asked questions

Is this financial advice?

No. It's a planning tool. For debt problems, use a free, regulated debt-advice service.

Which method is better?

Avalanche usually costs less in interest; snowball can feel more motivating. Pick the one you'll stick to.

Useful sources

Related ideas

💷 Money

Build a simple monthly budget

Rough guide only: 1–2 hours

💷 Money

Understand a confusing money term or letter

Rough guide only: 30 minutes

💷 Money

Find and cut subscriptions you don't use

Rough guide only: 1 hour

💷 Money

Write a complaint to get a refund

Rough guide only: 20–30 minutes

← More on debt · All money ideas