Two proven ways to pay off debt — one saves the most money, one keeps you going. Here's how to pick.
Both methods work. The difference is whether you optimize for money or for motivation — and which one you'll actually finish.
Pay the minimum on every debt, then throw every spare dollar at the one with the highest APR. When it's paid off, roll that whole payment onto the next-highest rate, and so on. Because you're always killing your most expensive interest first, this method clears debt with the least total interest and, mathematically, the fastest.
Here you ignore interest rates and attack the smallest balance first. You knock out a whole debt quickly, feel the win, and roll that payment onto the next-smallest. You may pay a little more interest overall, but the early victories keep many people going when a spreadsheet wouldn't.
Avalanche — every time, by definition, because you're cutting your highest interest first. On large, high-rate balances the gap can be real money. On smaller or similar balances, the difference between the two is often modest.
The honest answer: the one you'll stick with to the end. If you're disciplined and want to save the most, go avalanche. If you've started payoff plans before and lost steam, the snowball's quick wins may be worth a few extra dollars of interest. A finished snowball beats an abandoned avalanche.
Whichever you pick, the real engine is paying a fixed extra amount every month instead of the shrinking minimum. That single habit does more than the choice of method.
The avalanche method (highest interest rate first) always saves the most money and clears debt fastest on paper. The snowball method (smallest balance first) gives quicker wins that help motivation. The best one is the one you'll actually stick with.
You make minimum payments on everything, then put every extra dollar toward the debt with the highest APR. Once it's gone, you roll that money to the next-highest rate. It minimizes total interest.
You attack the smallest balance first while paying minimums on the rest. Clearing small debts quickly builds momentum and motivation, even though it can cost slightly more interest overall.