Snowball vs. avalanche: which payoff method fits you?
One saves the most money. The other is easier to stick with. Here’s how to choose.
How each works
Both methods pay the minimum on every debt and put every extra dollar toward one target. Snowball targets the smallest balance. Avalanche targets the highest interest rate.
What the math says
Avalanche never costs more in interest, because it attacks the most expensive debt first. The gap can be small when your rates are similar, and large when one card has a much higher APR.
How to choose
If you need early wins to stay motivated, snowball’s quick payoffs are worth a little extra interest. If you’re disciplined and one debt has a high rate, avalanche is the better deal. The best method is the one you’ll finish.
This article is for education and isn’t financial or legal advice. Scoring models and lender practices vary.