Debt Snowball
With the debt snowball, you list debts from smallest balance to largest balance. You pay minimums on all debts, then put extra money toward the smallest balance.
This method can feel motivating because you may clear the first account faster.
Debt Avalanche
With the debt avalanche, you list debts by interest rate. You pay minimums on all debts, then put extra money toward the highest-interest debt.
This method can save more interest if you stick with it.
Quick choice: Pick snowball if motivation is your biggest challenge. Pick avalanche if lowering interest cost is your biggest priority.
How to Start
- Write down each balance, interest rate, and minimum payment.
- Choose one target debt.
- Keep paying minimums on everything else.
- Move to the next debt once the target is paid off.