Methods
Avalanche vs snowball
Both methods keep every minimum current. The only decision is where the leftover cash goes this month. That leftover is the extra payment — the part that actually shortens the life of a debt.
Avalanche
Extra money goes to the debt with the highest annual percentage rate. After that balance hits zero, the freed minimum rolls to the next-highest APR. The goal is to starve the most expensive interest first.
Avalanche usually produces the lower interest total. It can feel slow if your highest-rate card is also the largest balance.
Snowball
Extra money goes to the smallest remaining balance, regardless of APR. The first account closes sooner. That closed account’s minimum becomes new extra for the next-smallest debt.
Snowball can cost more interest when a large, high-APR card waits its turn. People pick it when an early zero is the thing that keeps the plan alive.
What stays the same
- Interest still accrues on every unpaid balance, every month.
- Missing a minimum can trigger fees and penalty rates — this tool does not model those.
- When one debt is gone, its minimum is no longer reserved. That cash becomes extra.
A simple way to choose
Run both on the calculator. If the interest gap is small, pick the order you will actually keep. If the gap is hundreds or thousands of dollars, avalanche is the cheaper math. Neither method is credit advice; they are just two rules for the same monthly budget.