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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Skulamorteringskalkylator — Lavin vs Snöboll

Jämför lavin- (högsta ränta först) och snöboll- (lägsta saldo först) strategierna för skulamortering. Se hur mycket ränta du sparar och när du är skuldfri.

Lavin sparar mest ränta — $49 räntebesparing (lavin vs snöboll)

Lavin

Skuldfri om 81 månader

Total betald ränta: $14,385

Snöboll

Skuldfri om 82 månader

Total betald ränta: $14,434

AI-insikter

1Fokusera extra betalningar på "Credit Card" först — din skuld med högst ränta på 19.9% ÅRS.

Återstående saldo över tid

Your Debts

SkuldnamnSaldoÅRS %Min. betalning

Extra månadsbetalning$0

$0$1,000

Endast uppskattningar — inte finansiell rådgivning. Rådfråga alltid en kvalificerad rådgivare innan du fattar beslut.

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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.