If you have multiple debts, you need a plan for which one to attack first. Two strategies dominate the conversation, and they optimize for very different things.
The avalanche method
Pay minimums on everything, then throw every extra dollar at the debt with the highest interest rate. Repeat until all debts are gone.
Why it wins: it is mathematically optimal. Because you always retire the most expensive dollar first, you pay the least total interest and get out of debt fastest.
Why people avoid it: if your highest-rate debt also has a big balance, progress feels slow and it is easy to lose motivation.
The snowball method
Pay minimums on everything, then throw every extra dollar at the debt with the smallest balance. When it is gone, roll its payment into the next-smallest debt.
Why it wins: psychology. Wiping out a full balance quickly delivers a visible win that keeps you going. Studies of real payoff behavior (not spreadsheet behavior) suggest people who use snowball are more likely to stick with the plan.
Why it costs more: you may carry high-interest debt longer, paying more interest overall.
Which should you choose?
There is no wrong answer, only a trade-off between math and motivation:
- Want to minimize cost? Choose avalanche.
- Want to maximize your odds of finishing? Choose snowball.
The best strategy is the one you will actually sustain. Run both with our debt payoff calculator — it shows you the payoff order, total interest, and debt-free date for each method side by side.
Make either strategy easier
- Automate minimums so you never miss a payment.
- Automate the extra payment on the same day as your paycheck.
- Cut the interest rate itself — a balance transfer or consolidation can lower your APR, which matters more than which ordering you choose.
Once the debt is gone, redirect the same payment toward savings with our savings goal calculator and let compound interest start working for you instead of against you.