Add your debts below to compare the snowball (smallest balance first) and avalanche (highest interest first) payoff strategies side by side. See exactly when you'll be debt-free and how much interest you'll save.
Pay smallest balance first for quick wins
Pay highest interest first to save the most
| Month | Debt | Payment | Interest | Principal | Remaining |
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| Month | Debt | Payment | Interest | Principal | Remaining |
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Popularized by personal finance expert Dave Ramsey, the snowball method orders your debts from smallest balance to largest, regardless of interest rate. You throw every extra dollar at the smallest debt while paying minimums on the rest.
How it works: When the smallest debt is eliminated, you "roll" its entire payment (minimum + extra) into the next smallest debt. Each payoff frees up more money, creating a snowball effect.
The avalanche method is the mathematically optimal approach. You target the debt with the highest interest rate first while making minimum payments on everything else. This minimizes total interest paid over the life of your debts.
How it works: Once the highest-rate debt is gone, you redirect all of its payment toward the next highest-rate debt. The "avalanche" of freed-up cash accelerates each subsequent payoff.
Choose Snowball if: You have many small debts, need motivation from quick wins, or tend to lose steam on long-term financial goals. Studies from Harvard Business Review show that people who pay off accounts faster are more likely to eliminate all their debt.
Choose Avalanche if: You have high-interest credit card debt, are motivated by saving money, or the difference in interest between the two methods is significant (more than a few hundred dollars). If you're disciplined and number-driven, avalanche is your best bet.