Debt Snowball vs. Debt Avalanche

The Snowball method pays the smallest balance first for motivational wins — each payoff frees up cash to attack the next debt. The Avalanche method pays the highest-interest debt first, minimizing total interest paid. Mathematically, Avalanche saves more money; psychologically, Snowball has higher completion rates. Choose based on what keeps you motivated.

How Loan Amortization Works

In an amortizing loan, early payments are mostly interest, while later payments shift toward principal. On a $300,000 30-year mortgage at 7%, you'd pay ~$418,000 in total interest over the life of the loan. Making just one extra payment per year reduces the payoff time by ~4–5 years and saves ~$60,000 in interest.

Escaping the Credit Card Minimum Payment Trap

A $5,000 credit card balance at 22% APR with minimum 2% payments will take 30+ years to pay off and cost over $8,000 in interest. Paying $200/month fixed instead pays it off in 3 years with ~$1,700 total interest. Even small increases above the minimum payment have an outsized effect on payoff time.

Debt Payoff Guide: Snowball, Avalanche & Loan Strategies

Debt Snowball vs. Debt Avalanche

How Loan Amortization Works

Escaping the Credit Card Minimum Payment Trap

When to Refinance

Related Tools & Calculators

Loan Calculator

Credit Card Payoff Calculator

Mortgage Calculator

Compound Interest Calculator

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