How To Choose Snowball Vs Avalanche
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The two strategies in one sentence each
Three debts, $800/month available:
A worked comparison
Total minimums: $505/mo. Extra: $295/mo.
When avalanche wins big
But if instead Card A were $8,000 @ 22% and Card B were $2,500 @ 18%:
When snowball wins in practice
Avalanche produces the biggest mathematical savings when:
The hybrid most finance writers actually recommend
Snowball suits you if: you have 5+ debts (makes early wins frequent), you’ve quit past plans, you’re coming out of financial trauma and need wins to rebuild confidence, or the interest rates are clustered tight enough that the math difference is < $500 total.
Always refinance or consolidate where possible
Before optimizing the order of payoff, check whether you can refinance the whole stack into a lower rate: