Avalanche or snowball?
With several debts, you pay the minimum on each and put everything extra on one of them. The avalanche method targets the highest interest rate first; the snowball method targets the smallest balance first. When a debt is gone, its payment rolls over to the next.
The avalanche always costs less interest. The snowball clears the first debt sooner, and that early win keeps many people motivated. The calculator shows both, month by month.
- Use the interest rate on each statement (the APR).
- Never pay less than the minimum on any debt.
- Any extra, even small, shortens both plans.