What is the avalanche vs snowball debt payoff method?

The avalanche method directs extra payments to the highest-interest debt first, minimising total interest paid over time. The snowball method pays the smallest balance first, providing quick psychological wins. Avalanche always saves more money; snowball may be more motivating if you need early momentum.

Which debt should I pay off first?

Mathematically, always pay the highest-interest debt first. Credit card debt at 20–25% APR should almost always be prioritised over mortgages (3–7%) or student loans (4–8%). The interest rate difference compounds significantly over years.

How much extra should I pay on debt each month?

Even an extra $50–$100 per month can save thousands in interest and cut years off your payoff timeline. The extra payment reduces principal faster, which reduces future interest charges — creating a positive feedback loop.

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Gældsafviklingslommeregner — Lavine vs Snebold

Sammenlign lavine- (højeste rente først) og snebold- (laveste saldo først) strategierne for gældsafvikling. Se hvor meget renter du sparer og hvornår du er gældfri.

Lavine sparer mest renter — $49 rentebesparelse (lavine vs snebold)

Lavine

Gældfri om 81 måneder

Samlet betalt rente: $14,385

Snebold

Gældfri om 82 måneder

Samlet betalt rente: $14,434

AI-indsigter

1Fokuser ekstra betalinger på "Credit Card" først — din gæld med højeste rente på 19.9% ÅOP.

Resterende saldo over tid

Your Debts

GældsnavnSaldoÅOP %Min. betaling

Ekstra månedlig betaling$0

$0$1,000

Kun estimater — ikke finansiel rådgivning. Rådfør dig altid med en kvalificeret rådgiver, før du handler.

Compound Interest Calculator

See how compound interest grows your money. Apply the Rule of 72.

Mortgage Affordability Calculator

How much house can you afford? Income-to-payment ratios for 16 markets.

Avalanche vs Snowball: which is better?

Avalanche (mathematically optimal) — pay minimums on all debts, put extra toward the highest APR debt first. Minimises total interest paid.
Snowball (motivational) — pay minimums on all, put extra toward the smallest balance first. Faster early wins, but costs more interest overall.

For most people with similar-sized debts, the difference is small. If your highest-rate debt is also your smallest, both strategies are identical. The best strategy is the one you stick to.