| Name |
Balance ($) |
Interest rate (%) |
Min. payment ($) |
|
Snowball
Debt-free in
—
Pay smallest balance first
Total interest paid—
Total paid—
Debts cleared—
Avalanche
Debt-free in
—
Pay highest rate first
Total interest paid—
Total paid—
Debts cleared—
Payoff order
The sequence each strategy tackles your debts.
Frequently asked questions
Which method saves more money?
Mathematically, the avalanche method almost always saves more money because you eliminate high-interest debt faster, reducing how much interest accrues. The difference can be hundreds or thousands of dollars depending on your balances and rates.
Which method is better for motivation?
The snowball method wins on psychology. Paying off small debts quickly gives you early wins that build momentum and motivation. Research in behavioral finance shows many people stick with snowball longer — and a plan you stick with beats a mathematically optimal plan you abandon.
What is the "extra payment" field?
This is money above your minimum payments that you can throw at debt each month. After one debt is paid off in both strategies, its minimum payment gets "rolled" into the next debt — that's the core mechanic of both snowball and avalanche.
Can I combine both strategies?
Yes — a hybrid approach is common. For example, you might pay off one very small debt first for motivation, then switch to avalanche for the rest. The most important thing is to pick a plan and stay consistent with the extra payment.