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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Kalkulator Spłaty Długów — Lawina vs Kula Śnieżna

Porównaj strategie lawinową i kuli śnieżnej. Sprawdź, ile odsetek oszczędzasz i kiedy będziesz wolny od długów.

Lawina oszczędza najwięcej odsetek — $49 zaoszczędzone odsetki (lawina vs kula śnieżna)

Lawina

Wolny od długów za 81 miesięcy

Łączne odsetki zapłacone: $14,385

Kula śnieżna

Wolny od długów za 82 miesięcy

Łączne odsetki zapłacone: $14,434

Wnioski AI

1Skup dodatkowe płatności na "Credit Card" — Twój dług z najwyższym oprocentowaniem 19.9%.

Pozostałe saldo w czasie

Your Debts

Nazwa długuSaldoOprocentowanie %Minimalna rata

Dodatkowa miesięczna płatność$0

$0$1,000

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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.