Debt Payoff Calculator
Compare snowball vs. avalanche payoff methods. See when you'll be debt-free and how much interest you'll pay.
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Debt Snowball vs. Avalanche: Which Is Better?
🏔️ Debt Avalanche
Pay off highest interest rate first. Mathematically optimal.
- Saves the most money
- Mathematically optimal
- Recommended by most financial advisors
- Can feel slow at first (high-rate debts are often large)
⚪ Debt Snowball
Pay off smallest balance first. Psychologically motivating.
- Quick wins keep you motivated
- More debts paid off in year 1
- Popularized by Dave Ramsey
- Costs slightly more in interest
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method, popularized by Dave Ramsey, pays off debts in order of smallest balance to largest. You make minimum payments on all debts and put any extra money toward the smallest balance. Once paid off, you roll that payment into the next-smallest debt. The psychological wins keep you motivated.
What is the debt avalanche method?
The debt avalanche method pays off debts in order of highest interest rate to lowest. You make minimum payments on all debts and put extra money toward the highest-rate debt. This saves the most money in interest but takes longer to see a debt fully paid off, which can hurt motivation.
Which method is better?
The avalanche method saves more money in interest. The snowball method is more motivating because you see debts paid off faster. Mathematically, avalanche wins. Psychologically, snowball often wins. Most financial advisors recommend the one you'll stick with.
How much extra should I pay each month?
Even an extra $100/month per debt can cut years off your payoff timeline. A common rule: put 20% of your take-home pay toward debt (after minimums are met) until all non-mortgage debt is paid off.
Should I consolidate my debt first?
Debt consolidation makes sense if you can lower your interest rate and you have the discipline not to run up new balances. If your credit score qualifies you for a 0% balance transfer card or a lower-rate personal loan, consolidation can save significant interest.