Two Strategies, One Goal
The debt avalanche and debt snowball are the two most popular repayment strategies. Both involve making minimum payments on all debts while throwing extra money at one target debt. They differ only in how you choose which debt to target first.
Debt Avalanche
Target the debt with the highest interest rate first. Once it's paid off, roll that payment into the next-highest rate. Mathematically, this minimizes total interest paid. If you have cards at 24%, 19%, and 12%, the avalanche attacks the 24% card first regardless of balance.
Debt Snowball
Target the smallest balance first regardless of rate. Pay it off quickly, get a psychological win, then roll that payment into the next smallest. The snowball prioritizes momentum over math. If your balances are $800, $3,200, and $6,000, the snowball clears the $800 first.
What the Calculator Shows
The Debt Payoff Calculator on DebtCalc models both strategies side by side. Enter all your debts and a monthly payment budget, then compare. The avalanche typically saves 10–20% in total interest. The snowball provides faster first wins. Tally automates the avalanche method by distributing your payments optimally across cards each month.
The Honest Answer
The avalanche is mathematically superior. Always. But the snowball has higher completion rates in studies — because the quick wins keep people motivated. The best strategy is the one you'll actually stick with. If you're disciplined and motivated by numbers, avalanche. If you need visible progress to stay on track, snowball. The worst strategy is the one you abandon after two months.