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Debt & Credit · 6 min read

Snowball vs. avalanche: two debt payoff methods explained

Both approaches make minimum payments on every account and focus extra money on one balance at a time. The difference is which balance comes first.

Quick noteThis guide is general education, not individualized financial, insurance, legal or medical advice.

1. Debt snowball

Prioritize the smallest balance. Early wins can provide motivation, although the method may cost more interest.

2. Debt avalanche

Prioritize the highest interest rate. This generally minimizes interest, but progress can feel slower.

3. Choosing an approach

The best system is one you can follow consistently without missing essentials or minimum payments.

4. Before accelerating payments

Build a workable budget and consider a small emergency cushion to reduce the chance of new borrowing.

Your next step

Write down the two questions that matter most to you, then compare information from official sources and qualified providers.

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