Compare snowball (smallest first) vs avalanche (highest rate first) payoff methods.
Enter up to 5 debts below:
Enter each debt: name, balance, interest rate, and minimum payment.
Any amount above minimums you can put toward debt โ even $50 makes a difference.
Snowball (smallest balance first) for motivation, or Avalanche (highest rate first) to save money.
Compare both methods side-by-side โ payoff date, total interest, and monthly schedule.
The avalanche method minimizes total interest by targeting expensive debt first. The snowball method eliminates accounts faster for psychological momentum.
The debt avalanche method (highest interest first) saves more money, while snowball (smallest balance first) gives faster wins.
Even $50 extra per month toward your loan principal can shave years off your payoff timeline.
Debt snowball: list all debts from smallest balance to largest. Pay minimums on everything, then throw all extra money at the smallest debt. When it's paid off, roll that payment into the next smallest debt. The psychological wins from eliminating debts quickly keep you motivated. Dave Ramsey popularized this method and research shows people using snowball are more likely to become debt-free.
Debt avalanche: list all debts from highest interest rate to lowest. Pay minimums on everything, throw extra money at the highest-rate debt first. Mathematically, this saves more money in interest compared to snowball. Example: if you have a $2,000 card at 24% and a $500 card at 15%, avalanche pays the $2,000 first (saving more interest), while snowball pays the $500 first (quicker win).
The savings depend on your specific debts. Typical example with $20,000 total debt across 4 accounts: Avalanche saves $800-$2,500 in interest vs. snowball. However, the difference narrows with similar interest rates. If all your rates are within 2-3% of each other, the math difference is small โ pick whichever method you'll actually stick with. Consistency matters more than optimization.
Choose snowball if: you need quick motivational wins, you have several small debts to eliminate, or you've tried and failed to pay off debt before. Choose avalanche if: you're disciplined and math-motivated, your highest-rate debt isn't your largest, or the interest rate differences are significant (5%+ spread). Hybrid approach: start with one quick snowball win, then switch to avalanche for the rest.
Consolidation makes sense if: you can get a lower interest rate than your current average, you simplify multiple payments into one, and you won't run up new debt on the freed-up credit cards. Beware: many people consolidate then rack up new credit card debt, ending up worse off. Only consolidate if you address the spending habits that created the debt in the first place.