Choosing a debt payoff order
Two methods, one cheaper and one easier to sustain. The right answer depends on which one you will finish.
Avalanche costs the least
Pay minimums on everything, then put every spare dollar against the highest rate. Mathematically this always wins.
Snowball finishes more often
Clearing the smallest balance first produces a visible win early, and behavioural research suggests people are more likely to keep going.
Consolidate only if the rate genuinely drops
Moving debt around without lowering the rate just changes the paperwork.
Protect the minimums
A missed minimum can trigger a penalty rate that wipes out months of progress on any method.
Tools for this topic
Loan Payment Calculator
Payment, total interest and full amortisation for any fixed-rate loan.
Loans & CreditCredit Card Payoff Calculator
How long minimum payments really take, and what a fixed payment does instead.
Loans & CreditCredit Utilization Calculator
Overall and per-card utilization, plus how much to pay down to hit a target.
Loans & CreditDebt-to-Income Ratio Calculator
Front-end and back-end DTI, the two numbers every lender checks first.