What is the difference between the Snowball and Avalanche methods?

The Snowball method prioritizes paying off the smallest debt balance first, providing quick wins and psychological motivation. The Avalanche method targets the highest interest rate debt first, minimizing total interest paid. Choose Snowball if you need motivation from quick wins, or Avalanche if you want to save the most money.

How much money can I save using the Avalanche method?

The Avalanche method typically saves hundreds to thousands of dollars in interest compared to the Snowball method, especially with high-interest debts like credit cards. The exact savings depend on your debt balances, interest rates, and monthly payment amount. Use this calculator to see your specific savings.

What if my payments aren't enough to pay off my debts?

If your minimum payments plus extra payments don't exceed your monthly interest charges, your debt will never decrease. Consider increasing your monthly payment amount, negotiating lower interest rates with creditors, consolidating debts, or considering balance transfers to lower-rate cards to make progress on your debt.

Debt Payoff Calculator

Your Debts

Debt #1

Debt Name

Balance

Interest Rate (Annual %)

Minimum Payment

Extra Monthly Payment Additional amount beyond minimum payments

Preferred Strategy

Snowball - Pay smallest balance first

Avalanche - Pay highest interest first

How It Works

Compare two popular debt repayment strategies: Snowball (smallest balance first) and Avalanche (highest interest first). The snowball method provides psychological wins, while the avalanche method saves the most money.

Debt Payoff Tips

Pay more than the minimum whenever possible to reduce interest
Consider balance transfers to lower interest rates
Stick to your chosen strategy for best results

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