Compare avalanche, snowball, and whole life banking strategies side by side. See the real numbers — total interest, timeline, and what you keep at the end.
Credit Card
Credit CardCar Loan
Auto LoanRoll freed up payments
When a debt is eliminated, roll its payment into the next target
Whole Life Banking Strategy
Example values — adjust to match your policy
Instead of paying interest to outside lenders, a whole life banking approach lets you use your own policy's cash value to consolidate debt at a lower rate — while your cash value continues to grow uninterrupted. You eliminate the debt and keep an asset at the end.
Use a policy loan from your existing whole life policy to consolidate high-rate debts. Your cash value stays intact as collateral and continues compounding.
Model a new whole life policy where part of your cash flow goes to premiums (building cash value) and part goes to debt payments. Once enough cash value accumulates, a policy loan consolidates remaining debts.
A whole life policy has two premium components: the base premium (covers insurance costs and builds long-term guarantees) and PUA (goes almost entirely toward cash value). The more you allocate to PUA, the faster your cash value grows and the sooner you can take a policy loan to consolidate your debts.
Dividends reinvested annually as paid-up additions (PUA). Illustrative — not guaranteed.
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| Metric | WL Banking | Avalanche | Snowball | Minimum Only |
|---|---|---|---|---|
| Months to debt free | Configure | 2 yr 6 mo | 2 yr 6 mo | 4 yr 8 mo |
| Total interest paid | Configure | $3,256 | $3,256 | $7,455 |
| Difference vs. minimum | Configure | $4,199 | $4,199 | — |
| Monthly outflow | Configure | $900/mo | $900/mo | $600/mo |
| Asset at debt freedom | Configure | $0 | $0 | $0 |
When Credit Card clears$250/mo routes to Car Loan
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