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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ऋण भुगतान — एवलांश बनाम स्नोबॉल

एवलांश और स्नोबॉल रणनीतियों की तुलना करें। जानें कितना ब्याज बचाते हैं और कब कर्जमुक्त होंगे।

एवलांश सबसे अधिक ब्याज बचाती है — $49 बचा हुआ ब्याज (एवलांश बनाम स्नोबॉल)

एवलांश

81 महीनों में कर्जमुक्त

कुल ब्याज भुगतान: $14,385

स्नोबॉल

82 महीनों में कर्जमुक्त

कुल ब्याज भुगतान: $14,434

AI अंतर्दृष्टि

1पहले "Credit Card" पर भुगतान केंद्रित करें — 19.9% की सबसे उच्च दर वाला ऋण।

समय के साथ शेष राशि

Your Debts

ऋण का नामशेष राशिब्याज दर %न्यूनतम भुगतान

अतिरिक्त मासिक भुगतान$0

$0$1,000

केवल अनुमान — यह वित्तीय सलाह नहीं है। निर्णय लेने से पहले हमेशा किसी योग्य CA या सलाहकार से परामर्श लें।

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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.