Snowball vs. Avalanche Method
- Avalanche (recommended): Pay off highest interest rate first. Saves the most money mathematically.
- Snowball: Pay off smallest balance first. Provides psychological wins to keep you motivated.
Both methods: make minimum payments on all debts, then throw extra money at the target debt.
Frequently Asked Questions
Which method is better? Avalanche saves more in interest. Snowball provides faster "wins." Choose snowball if you need motivation; avalanche if you want to minimize costs.
How much extra should I pay? Any extra helps. Even $50-100/month extra can shave years off your debt and save thousands in interest.