How to Pay Off Credit Card Debt: Avalanche vs. Snowball Methods

Two Popular Debt Payoff Strategies

When tackling credit card debt, two methods stand out: the Debt Avalanche and the Debt Snowball.

The Debt Avalanche Method

Strategy: Pay off debts with the highest interest rates first.

Pros:

Minimizes total interest paid

Mathematically optimal

Faster debt payoff

Cons:

Requires discipline

May take longer to see first win

The Debt Snowball Method

Strategy: Pay off smallest balances first, regardless of interest rate.

Pros:

Quick wins build motivation

Psychological momentum

Easier to stick with

Cons:

May pay more in total interest

Not mathematically optimal

Which Should You Choose?

FactorAvalancheSnowball

Best forMath-focused saversMotivation-driven Interest savedMoreLess Quick winsFewerMore

Steps to Get Started

List all debts with balances and interest rates

Choose your method

Make minimum payments on all debts

Put extra money toward your target debt

Repeat until debt-free

Use our Credit Card Payoff Calculator to see how quickly you can become debt-free.