Debt Snowball vs. Debt Avalanche

The two strategies

Both methods pay every minimum, every month, and throw all extra money at one target debt. They differ only in how the target is chosen:

• Snowball: attack the smallest balance first. Debts vanish fastest, which keeps motivation alive.
• Avalanche: attack the highest interest rate first. Expensive debt dies first, which usually costs less overall.

When a target clears, its whole payment — minimum plus the extra — rolls into the next target. That rolling payment is the "snowball" both methods share.

Same debts, two outcomes

Assumptions: a $2,500 store card at 10% ($70 minimum) plus a$9,000 credit card at 21% ($220 minimum), with$150/month extra, fixed rates, no fees:

Avalanche wins here by 5 months and $913.73 — real money, but smaller than the internet's holy wars suggest. And snowball delivers a fully cleared debt in year one. Run your own numbers in the debt payoff calculator, which simulates both side by side.

How to choose

• Pick avalanche if you want the mathematically cheapest plan and trust yourself to stick with it through slow early months.
• Pick snowball if past plans died quietly — early wins are a feature, not a consolation prize.
• Either beats minimums-only by years. The extra payment matters more than the method.

Lender math may differ on fees and timing, and this is general education, not advice — see the disclaimer.

Quick answers

Should I save while in debt? Keep a small starter buffer, then aim everything spare at high-rate debt — its guaranteed "return" beats most investments.

What if minimums don't cover the interest? Balances grow forever; no strategy works until payments exceed monthly interest. The calculator says so plainly instead of inventing a payoff date.

Can I switch methods halfway? Yes — re-run the numbers when life changes. A plan you update beats a perfect plan you abandon.