The avalanche method pays the highest APR first. The snowball method pays the smallest balance first. With both, you keep making minimum payments on every account, then aim every extra dollar at one target debt.
How the avalanche method works
Pay minimums on every debt, then send extra money to the highest APR debt first.
How the snowball method works
Pay minimums on every debt, then send extra money to the smallest balance first.
Side-by-side comparison
| Method | Total interest paid | Months to payoff |
|---|---|---|
| Avalanche | $2,350 | 31 |
| Snowball | $2,720 | 32 |
Example: $12,000 total across 3 cards, with $300 extra per month.
Which should you choose?
Choose avalanche if you want the lowest interest cost. Choose snowball if you need visible progress to stay consistent. Amar et al. (2011) found that early account payoffs can help people stick with the plan.
Frequently asked questions
Which method saves more money?
Avalanche saves more interest because it attacks the highest-rate debt first. The gap can be small or large, depending on how much higher that top APR is.
Is the snowball method psychologically proven?
Research by Amar et al. (2011) and Harvard Business School studies found that paying off small accounts first can create momentum and improve follow-through, even when it costs more interest.
Can I switch between methods mid-payoff?
Yes. Some people start with snowball for motivation, then switch to avalanche once they have fewer accounts to manage.
What if two debts have the same interest rate?
When rates are tied, pay the smaller balance first. That closes an account and frees up a minimum payment for the next debt.
Methodology note: Avalanche comparisons use month-by-month interest and payment allocation. Snowball motivation context cites Amar et al. (2011) behavioral research. Use the calculator to compare your own balances, APRs, minimum payments, and extra-payment budget; this guide is educational and not credit counseling.