The difference between the two strategies
"Avalanche" directs any extra payment to the highest-interest debt first — this is the mathematically optimal choice since it minimizes total interest paid across all debts. "Snowball" directs the extra payment to the smallest-balance debt first — it's paid off faster psychologically, giving a motivational boost to keep going, even if the total cost is slightly higher.
Once any debt is fully paid off, its monthly minimum is automatically redirected to the next debt in order — so your total monthly budget stays fixed throughout the plan.
FAQ
Which strategy is better for me?
If your main goal is saving the most interest possible, choose avalanche. If you need a psychological motivational boost from seeing debts close quickly, snowball might suit you better despite its slightly higher total cost.
What if the monthly minimum doesn't even cover the interest?
This means the debt balance will keep growing instead of shrinking no matter how long you wait. Make sure the minimum you enter is greater than the monthly interest owed on that debt.
Source
Standard avalanche and snowball debt repayment strategies.
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Last updated: July 2026
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