Avalanche or snowball?
Both methods pay every minimum, then put all extra money toward one target debt. When that debt is gone, its whole payment rolls to the next target. The payment grows like a snowball in both cases. The only difference is the order.
- Avalanche targets the highest interest rate first. It always costs the least interest.
- Snowball targets the smallest balance first. You clear accounts sooner, and that early progress helps many people stick with the plan.
The gap between the two is often smaller than people expect. The calculator shows it in dollars, so you can decide whether the quick wins are worth it.
Keep the total payment fixed
The method only works if you keep paying the same total each month as debts disappear. If you spend the freed-up minimums instead, you are back to paying minimums only, and that path is shown in the last comparison.