Debt snowball
vs avalanche
Both methods pay minimums on every debt and put extra money toward one target. The difference is which debt gets the extra.
Avalanche: highest APR first
Put the extra toward the debt with the highest interest rate. Mathematically, this minimizes total interest. It is the better choice if you can stay motivated without quick wins.
Snowball: smallest balance first
Put the extra toward the smallest balance. You clear an account sooner, which can make the process feel real. It may cost more interest than avalanche, but consistency matters more than the theoretical optimum.
A simple comparison
Suppose you have $2,000 at 29% and $8,000 at 18%, with $500 extra per month. Avalanche targets the 29% balance first. Snowball targets the $2,000 balance first. The difference in interest is usually modest; the difference in motivation can be large.
What to do first
Make minimums, build a small emergency buffer, then choose one method and automate it. Switching methods every month is the expensive option.
FAQ
Which saves more?
Avalanche, because it targets the highest rate.
Which is more likely to finish?
Snowball, for some people, because of the early wins.
Estimate only; not financial advice.