Avalanche vs snowball: pick a debt plan you'll stick to

If you have more than one debt, like a credit card, a personal loan and a buy‑now‑pay‑later plan, you need a rule for where extra money goes. Pay the minimum on everything, then throw every spare amount at one target. When it's gone, roll its payment into the next one.

The avalanche: highest interest first

Order your debts by interest rate and attack the most expensive one first. Mathematically this is the cheapest route. You'll pay the least total interest and usually finish soonest.

The snowball: smallest balance first

Order your debts by balance and clear the smallest one first, regardless of rate. You'll pay a bit more interest, but you get a win fast, and that early momentum keeps a lot of people going.

Which one should you pick?

• If your rates are very different (say 29% on a card and 6% on a loan), the avalanche can save real money. Start there.
• If your balances are small and similar, the difference is often tiny. Pick the snowball for the motivation.
• If you've started and stopped debt plans before, the snowball's quick wins are worth the extra cost.

Whichever you choose, the biggest factor isn't the method. It's the extra amount on top of the minimums. Even an extra $100 a month can take years off a plan.

Example amounts are scaled to typical incomes in your chosen currency. This guide is general education, not personal financial advice.