Debt
Debt Avalanche vs Snowball: Pick Your Payoff Strategy
Debt Avalanche vs Snowball: Pick Your Payoff Strategy
Carrying several debts, the order you pay them off matters almost as much as the extra cash you throw at them.
The avalanche
Pay the minimum on everything, then send every spare dollar to the highest-interest debt. That mathematically minimizes total interest — the most efficient route on paper.
The snowball
Pay the minimum on everything, then send the extra to the smallest balance. You clear debts faster, which builds momentum. You may pay a bit more interest, but plenty of people stick with the plan precisely because the early wins feel good.
Why either beats minimums
Paying only the minimum can keep you in debt for decades, mostly feeding interest. Both methods speed things up by rolling each freed-up minimum into the next target.
The debt snowball vs avalanche calculator models both side by side and shows the time and total interest for each, so you can pick with eyes open.
Related reading
Debt
The Fastest Way to Pay Off Credit Card Debt
Minimum payments keep you in debt for decades. Here is how to escape sooner.
Budgeting
How to Build an Emergency Fund That Actually Covers You
Three to six months of expenses can be the difference between a hiccup and a crisis.
Retirement
FIRE Basics: What It Takes to Retire Early
Financial Independence, Retire Early is about expenses, savings rate, and the 4% rule.