Question 1

What is the debt avalanche method?

Accepted Answer

The avalanche method prioritizes your highest-interest debt first while making minimum payments on all others. Once that debt is paid off, you roll its payment toward the next-highest rate. This approach minimizes the total interest you pay over time.

Question 2

What is the debt snowball method?

Accepted Answer

The snowball method targets your smallest balance first, regardless of interest rate. Paying off a small debt quickly provides a motivational win. You pay more in interest than the avalanche method, but many people find it easier to stay motivated.

Question 3

Which debt should I pay off first?

Accepted Answer

Mathematically, the avalanche method saves more money. But if you need the motivational boost of quick wins to stay consistent, the snowball method is still a strong choice. The best method is the one you'll actually stick with.