Question 1

What is the debt snowball method?

Accepted Answer

The snowball method pays off debts from smallest balance to largest, regardless of interest rate. As each small debt is eliminated, its payment rolls into the next debt. The psychological wins from quickly eliminating debts help maintain motivation, which research shows leads to better long-term outcomes for many people.

Question 2

What is the debt avalanche method?

Accepted Answer

The avalanche method pays off debts from highest interest rate to lowest, which is mathematically optimal — you'll pay the least total interest. However, if your highest-rate debt also has the largest balance, it may take longer to see your first debt eliminated, which can be demotivating for some people.

Question 3

Which debt payoff method is better?

Accepted Answer

Mathematically, the avalanche method always saves more in interest. But research from Harvard Business Review shows that the snowball method leads to higher completion rates because the quick wins build momentum. The best method is the one you'll stick with. This calculator shows you both so you can make an informed choice.

Question 4

How much extra should I pay toward debt?

Accepted Answer

Even an extra $100-200/month can dramatically reduce your payoff timeline. The key is consistency. Look at your budget for areas to cut temporarily: subscriptions, dining out, entertainment. Every extra dollar reduces your principal, which reduces future interest — creating a positive feedback loop.

Free Debt Payoff Calculator

Your Debts

Avalanche (Highest Rate First)

Snowball (Smallest Balance First)

Strategy Comparison

Frequently Asked Questions

Your Debts

Avalanche (Highest Rate First)

Snowball (Smallest Balance First)

Strategy Comparison

Frequently Asked Questions