| Debt Name | Balance ($) | APR (%) | Min Payment ($) |
|---|
How the Comparison Works
Both strategies pay the required minimum on all debts each month, then apply all extra funds to the focus debt. Snowball focuses on the lowest balance first; avalanche focuses on the highest APR first. When a debt is paid off, its payment rolls into the next focus debt. The simulation runs month by month until all debts reach $0.
Frequently Asked Questions
The snowball method pays off debts from smallest balance to largest, regardless of interest rate. Each time you pay off a debt, you roll its payment into the next smallest. This method may cost more in interest but provides psychological wins and momentum from paying off accounts quickly.
The avalanche method pays off debts from highest interest rate to lowest, which minimizes total interest paid. It is mathematically optimal but may take longer to eliminate the first debt if it is large, which can be demotivating for some people.
The avalanche method saves more money in interest over time. The snowball method can be better for motivation and building financial habits, especially if you have several small debts you can eliminate quickly.
The minimum payment is the lowest amount required by each lender each month. Extra payment is any amount above the minimum total that you apply to the target debt. Both methods apply minimums to all debts except the focus debt.
Any amount above your combined minimums accelerates payoff. Even $50-100 extra per month can save thousands in interest and shave years off your payoff timeline on high-rate debt.
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