The Best Strategy to Pay Off Credit Card Debt: Avalanche vs. Snowball

When you have multiple credit card debts, having a clear strategy is the key to paying them off efficiently. This calculator models the two most popular and effective methods: the Debt Avalanche and the Debt Snowball.

The Debt Avalanche Method (Highest APR First)

The Debt Avalanche is the most mathematically efficient strategy. You make minimum payments on all your debts, then allocate any remaining payment money to the card with the highest APR.

• Pros: You will pay the least amount of interest over time and get out of debt faster.
• Cons: It may take longer to pay off your first card, which can feel less motivating for some people.

The Debt Snowball Method (Lowest Balance First)

With the Debt Snowball, you make minimum payments on all debts, then allocate any remaining payment money to the card with the lowest balance, regardless of its interest rate.

• Pros: You get quick, motivating wins by clearing individual debts faster. This psychological boost can help you stick to your plan.
• Cons: You will almost always pay more in total interest compared to the avalanche method.

Which Method is Right for You?

The "best" method is the one you will stick with. Use this calculator to run your numbers with both strategies. The Avalanche is financially optimal, but if the quick wins of the Snowball will keep you motivated, it is also an excellent choice. The most important step is to create a plan and commit to paying more than the minimum.