Snowball vs avalanche debt payoff

Debt avalanche pays the highest-interest balance first and saves the most money. Debt snowball pays the smallest balance first and wins on momentum. The mathematically best method is the one you complete.

Section 01

Avalanche: fastest math

Order balances by interest rate from highest to lowest. Pay minimums on everything and put all extra cash toward the highest-rate debt.

Section 02

Snowball: fastest wins

Order balances from smallest to largest. Knock out the first account quickly, then roll that payment into the next.

Section 03

FAQ

Which saves more interest?

Key takeaway

Avalanche almost always saves more interest, especially when rates differ a lot.

Which is better for motivation?

Snowball. Clearing an account gives you a quick win and simplifies the monthly routine.

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The debt snowball method directs additional money to the smallest balance while maintaining required payments on every other debt. After one balance is paid, its payment moves to the next balance. The debt avalanche instead targets the highest interest rate first. If all payments and rates remain the same, the avalanche generally minimizes interest, while the snowball organizes repayment around completing smaller balances sooner.

Enter each balance, annual interest rate, minimum payment, and any additional monthly amount. A credit card payoff calculator may produce different results if a card uses variable rates, daily interest, fees, or promotional terms. Confirm whether a loan payoff calculator assumes payments occur monthly and whether additional amounts are applied directly to principal. Continue making at least required payments on time, regardless of the payoff order selected.

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