Compare the avalanche and snowball methods. Find your debt-free date and see how much interest you'll save.
Pay minimums on all debts. Put all extra money toward the highest interest rate debt first.
Best for: Mathematically optimal. You pay less total interest and get out of debt faster overall.
Downside: Your highest-rate debt might have a large balance, so it takes longer to see your first "win" (paid-off account). Can feel slow at first.
Pay minimums on all debts. Put all extra money toward the smallest balance first.
Best for: Psychological momentum. You eliminate accounts faster, which feels motivating and reduces the number of bills you're tracking.
Downside: Usually costs more interest than avalanche. But if it keeps you motivated, you're better off than giving up on a perfect plan.
If your debts have similar balances — pick avalanche. If you have one very small debt that you can knock out quickly — start with snowball for the quick win, then switch to avalanche for the rest. Both are vastly better than making only minimum payments.
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