Snowball vs. avalanche
Both plans pay the minimum on every debt and put all extra money toward one target debt. When that debt is gone, its payment rolls into the next one, so your payments build like a snowball.
- Avalanche targets the highest interest rate first. It usually costs the least interest.
- Snowball targets the smallest balance first. You clear whole debts sooner, which many people find motivating.
The calculator runs both so you can see the real difference for your debts. Often it's smaller than people expect, and the best plan is the one you'll stick with.
Ways to speed it up
- Stop adding new charges to the cards you're paying off.
- Ask your card issuer for a lower rate, or look at a 0% balance transfer if the fee is small and you can pay it off during the promo period.
- Put windfalls such as tax refunds and bonuses toward the target debt.
Frequently asked questions
What if my payment doesn't cover the interest?
Then the balance grows instead of shrinking and the calculator will tell you. Raise the payment or ask about a lower rate, a hardship plan, or nonprofit credit counseling.
Should I pay off debt or save first?
Many experts suggest a small emergency fund first, so a surprise bill doesn't go back on a card, then aggressive payoff of high-interest debt.