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Your Debts

Snowball

Smallest balance first

Avalanche

Highest rate first

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Master Your Debt: Payoff Strategies

Debt Snowball

Pay smallest balances first for quick psychological wins. Great for motivation and building momentum.

Best for: Those who need quick wins to stay motivated.

Debt Avalanche

Pay highest interest rates first to minimize total interest. Mathematically optimal for saving money.

Best for: Those focused on minimizing total cost.

Compound Interest

Credit cards compound daily. Early payments reduce your average daily balance and save money.

Tip: Pay mid-cycle to reduce interest charges.

Frequently Asked Questions

What is the debt snowball method?

The debt snowball method pays off debts from smallest to largest balance. You make minimum payments on all debts, then put extra money toward the smallest debt first. Once paid, you roll that payment into the next smallest.

What is the debt avalanche method?

The debt avalanche method pays off debts from highest to lowest interest rate. This minimizes total interest paid over time, potentially saving thousands compared to other methods.

Which method should I choose?

Choose snowball if you need motivation from quick wins. Choose avalanche if you want to minimize total interest. The best method is the one you'll stick with consistently.

Your Results

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Snowball

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Avalanche

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Payoff Order

Top Debt Consolidation Options

Lender APR Amount Rating
SoFi 7.99% - 23.43% $5K - $100K 4.8
LightStream 7.49% - 25.49% $5K - $100K 4.7
Discover 7.99% - 24.99% $2.5K - $40K 4.6

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