Avalanche vs. snowball: two ways to pay off debt
List each debt with its balance, APR and minimum payment, then add the extra money you can put toward debt each month. Both methods pay every minimum, put all the extra money on one target debt, and roll that payment into the next debt once the first is paid off.
- Avalanche – target the highest APR first. It saves the most interest and is usually the fastest.
- Snowball – target the smallest balance first. You pay off whole accounts sooner, and those early wins help many people stay motivated.
The calculator compares both methods with paying only the minimums, showing your debt-free time, total interest and the order in which each debt is paid off. If the difference is small, choose the plan you are most likely to stick with.
Tips to get out of debt faster
- Stop adding new charges to the cards you are paying off.
- Keep a small emergency fund so a surprise bill doesn't go back on a card.
- Call your card issuers and ask for a lower APR; it often works if you have paid on time.
- Put raises, refunds and side income toward the target debt.
Frequently asked questions
Which method is better, avalanche or snowball?
Avalanche always costs the same or less in interest. Snowball can work better if quick wins keep you going. The best method is the one you will follow every month.
Should I include my mortgage?
Usually not. These methods work best for high-interest consumer debt such as credit cards, personal loans and car loans.
What if my payment does not cover the interest?
If a minimum payment is less than the monthly interest, that balance will grow. Add extra money to it, ask for a lower rate or look at a consolidation loan.