Debt snowball
The debt snowball method pays extra toward the smallest balance first while making minimum payments on the others. It can create faster visible wins.
Debt avalanche
The debt avalanche method pays extra toward the highest APR first. It usually reduces interest cost when payments and balances are otherwise the same.
Which one is better?
The avalanche method is often mathematically cheaper. The snowball method may feel easier to stick with because balances disappear sooner. A useful plan is the one you can actually follow consistently.
Example
If one card has a $900 balance at 18% APR and another has a $4,000 balance at 27% APR, snowball starts with the $900 balance. Avalanche starts with the 27% APR balance.
Use the calculator
Estimate payoff time with the Debt Payoff Calculator or the Credit Card Payoff Calculator.
Important note
This guide is educational only and is not credit, lending, financial, tax, legal, or accounting advice.