Debt Avalanche vs. Debt Snowball

List your debts from highest interest rate to lowest. Pay minimums on everything, then throw every extra dollar at the highest-rate debt first. Once it's paid off, roll that payment into the next-highest rate debt, and repeat.

List your debts from smallest balance to largest, regardless of interest rate. Pay minimums on everything, then put extra money toward the smallest balance first. Once it's gone, roll that payment into the next-smallest balance.

Mathematically, the avalanche method almost always saves more in total interest, since you eliminate your most expensive debt first.

The snowball method tends to produce faster "wins" — paying off a full account early can provide the psychological momentum many people need to stick with a payoff plan long-term.

If you're disciplined and motivated purely by the math, avalanche saves the most money. If you've struggled to stick with payoff plans before, snowball's quick wins may help you actually finish.

If your minimum payments alone are unmanageable, or your total debt is large relative to your income, DIY payoff strategies may not be realistic — in that case, debt settlement, consolidation, or credit counseling may be worth exploring. Try our Debt Payoff Calculator to see which method fits your numbers.