Two proven ways out of debt
Both strategies pay the minimum on every debt and throw all spare money at one target debt until it's gone, then roll that freed-up payment onto the next. The only choice is the order. Avalanche targets the highest interest rate first to minimise what you pay overall. Snowball targets the smallest balance first so you clear whole debts quickly and stay motivated.
Which wins for you?
The comparison above uses your real numbers. Avalanche is almost always cheaper, but if the interest saved is small, the snowball's momentum may be worth more than the difference. The single biggest factor either way is the extra monthly amount — increase it and both timelines shrink dramatically.
Frequently asked questions
What is the difference between the snowball and avalanche methods?
The avalanche method pays extra toward the debt with the highest interest rate first, which minimises total interest. The snowball method pays off the smallest balance first for quick wins and motivation. Both pay the minimum on every debt; they differ only in where the extra money goes.
Which method should I choose?
Avalanche saves the most money mathematically. Snowball can keep you motivated by clearing whole debts sooner. If the interest difference is small, the snowball’s psychological boost often wins; if one debt has a very high rate, avalanche is usually worth it.
How does extra payment speed things up?
Once the targeted debt is cleared, its minimum payment is rolled into the next debt on top of your extra amount. This rolling payment grows as debts disappear — that compounding of freed-up payments is what makes both methods so effective.
How do I enter my debts?
Fill in the balance, annual interest rate (APR) and minimum monthly payment for each debt. Leave rows blank if you have fewer debts. Then set how much extra you can pay each month across all of them.
Last updated: June 2026