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Snowball vs Avalanche

Two debt-payoff strategies side-by-side. Snowball pays the smallest balance first (psychological wins). Avalanche pays the highest rate first (least total interest).

What this is

Two ways to pay off debt

Both methods pay minimums on everything + throw extra cash at one debt at a time. The difference is WHICH debt gets the extra cash.

  • ·SNOWBALL (Dave Ramsey): smallest balance first. You see a debt vanish quickly — psychological win — and momentum builds.
  • ·AVALANCHE: highest interest rate first. Mathematically optimal — you pay the least total interest.
  • ·Both finish in roughly the same time. Avalanche is cheaper; snowball is motivating. Pick the one you'll stick to.

Your debts

If you pay ONLY the minimums (no extra)

Months to debt-free

83

Total interest paid

$6,139

Total paid out

$30,839

Paying only minimums costs $3,099 MORE in interest than adding $250/mo extra on a snowball plan.

With $250/month extra

Snowball · months

35

Snowball · interest

$3,040

Avalanche · months

35

Avalanche · interest

$3,040

Both strategies finish at roughly the same time + cost given these inputs.

Educational coaching. Not financial advice. Pick the strategy you'll actually stick to. Avalanche wins on paper; snowball wins on motivation.

Payoff chart

Total debt remaining, month by month

Each line shows the SUM of every debt balance you still owe at the end of each month. Watch which line hits zero first — that's your debt-free date. The faster the line drops, the less interest you pay.

$0$5K$10K$15K$20K01y3y4y6y7ymonths → yearsTotal debt
Snowball (35 months)Avalanche (35 months)Minimum-only (83 months)

Avalanche (dashed green) usually drops faster because it kills the highest-interest debt first — less interest accruing means more of every payment hits principal. Snowball (solid blue) wins on quick small-balance wins for motivation.