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.

RRédeWise

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Calculadora de Deudas — Avalancha vs Bola de Nieve

Compara las estrategias avalancha y bola de nieve. Descubre cuánto ahorras en intereses y cuándo estarás libre de deudas.

La avalancha ahorra más intereses — $49 intereses ahorrados (avalancha vs bola de nieve)

Avalancha

Sin deudas en 81 meses

Total de intereses pagados: $14,385

Bola de nieve

Sin deudas en 82 meses

Total de intereses pagados: $14,434

Análisis IA

1Concentra los pagos en "Credit Card" primero — tu deuda con mayor tasa al 19.9%.

Saldo restante en el tiempo

Your Debts

Nombre de la deudaSaldoTAE %Pago mínimo

Pago mensual adicional$0

$0$1,000

Solo estimaciones — no constituye asesoramiento financiero. Consulta siempre con un asesor cualificado antes de actuar.

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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.