Debt Snowball vs. Avalanche Optimizer

About Debt Repayment Strategies

There are two main strategies for paying off multiple debts:

• Debt Snowball: Pay off smallest balances first. This gives psychological wins that can help maintain motivation.
• Debt Avalanche: Pay off highest interest rates first. This minimizes the total interest paid and is mathematically optimal.
• Hybrid Approach: A customized strategy that balances quick wins with interest savings.

This calculator compares all three approaches to help you choose the best strategy for your situation.