Debt Snowball vs Avalanche Payoff
**Snowball** pays smallest balances first for quick wins. **Avalanche** pays highest APR first to minimize total interest. Avalanche usually saves more money; snowball may finish sooner psychologically.
Step by step
1. List debts with APR and balance
Minimum payments on all accounts—extra to snowball or avalanche target.
2. Model total interest
Run both orders in a loan/payment calculator with extra payment.
3. Hybrid
Snowball one small win, then avalanche the rest.
Snowball vs avalanche
Choose snowball if you need momentum; avalanche if you want lowest total cost.
- Snowball: Fast early payoffs; may pay more interest.
- Avalanche: Mathematically optimal interest; slower first victory.
Common mistakes
- Stopping after first payoff without rolling payment
- Ignoring promotional 0% APR timing
FAQ
Does order matter with equal APR?
No—focus extra payment on any account, effect is the same.