Frequently asked questions
What is the avalanche method?
Pay minimums on all cards, then put every extra dollar toward the card with the highest interest rate. Once that card is paid off, redirect its minimum plus your extra payment to the next-highest rate card. This minimizes total interest paid.
What is the snowball method?
Pay minimums on all cards, then put extra payments toward the card with the smallest balance first. Clearing small debts quickly builds momentum and motivation, even though it costs slightly more in interest than avalanche.
Which method is better?
Avalanche always costs less in total interest. Snowball can work better psychologically because you see debts disappear faster. If the interest difference is small, pick whichever keeps you motivated to stay on track.
What if my cards have the same interest rate?
When rates are equal, avalanche and snowball produce the same result regardless of order. Focus on the one with the highest balance to reduce overall interest exposure, or the smallest for faster wins.
How much does extra payment matter?
Significantly. Even an extra $100/month can cut years off your payoff timeline and save thousands in interest. The extra payment is entirely applied to principal (via the priority card), which accelerates the payoff of all remaining cards.
Should I consolidate instead?
If you can get a consolidation loan at a lower rate than your weighted average credit card rate, consolidation saves interest and simplifies payments. Compare with the Debt Consolidation Calculator to see the exact savings.