Compare debt avalanche vs snowball methods to find the fastest and most cost-effective way to eliminate your debt. Calculate payment strategies for credit cards, personal loans, and other debts to achieve financial freedom.
Pay highest interest rates first - saves the most money
Pay smallest balances first - builds momentum and motivation
See side-by-side comparison of both strategies
Additional amount you can pay each month beyond minimum payments
Pay minimums on all debts, then put extra money toward the highest interest rate debt first. Saves the most money mathematically.
Pay minimums on all debts, then put extra money toward the smallest balance first. Builds momentum and motivation through quick wins.
The debt avalanche method saves more money by targeting high-interest debts first, while the debt snowball method provides psychological wins by eliminating smaller debts quickly. Choose avalanche for maximum savings or snowball for motivation and momentum.
Pay as much extra as your budget allows after covering essentials and building a small emergency fund. Even an extra $50-100 per month can significantly reduce your payoff time and total interest paid.
Generally, pay off high-interest debt (above 6-8%) before investing. For lower-interest debt, you might consider investing while making minimum payments, especially if you get employer 401(k) matching.
Debt consolidation can help if you qualify for a lower interest rate than your current debts. Consider personal loans, balance transfer cards, or home equity loans, but avoid extending your payoff timeline unnecessarily.
Track your progress monthly, celebrate milestones, visualize your debt-free life, and consider the snowball method if you need motivation. Join online communities and consider finding an accountability partner.