Three debts and $900 per month

Cost or constraint

$2,000 at 15%

Timing or value

$6,000 at 28%

Cost or constraint

$9,000 at 9%

Timing or value

Avalanche targets 28% first

Cost or constraint

Snowball targets $2,000 first

Keep the time period, usage and exit point consistent across both choices.

Compare the alternatives on equal terms

Minimums come first

Keep every account current, then direct the shared extra amount to one target. When a debt clears, roll its entire payment forward.

Promotions can alter the order

A deferred-interest deadline or expiring transfer rate can create a time-sensitive cost larger than the stated current APR.

The budget must be identical

Comparing strategies with different monthly payments measures payment size, not ordering. Start both simulations on the same date and keep the same total cash commitment after each account closes. If statement minimums change, rerun both methods with the same updated rules.

Behavior is an explicit tradeoff

If a quick closure materially improves persistence, calculate the added interest rather than claiming motivation is financially free.

This decision belongs in The Real Cost of Credit Cards. Use Credit Card Minimum Payments: Why the Finish Line Moves to check the next assumption, then test the numbers in the Debt Avalanche vs. Snowball Calculator.

If one new loan is being considered, compare payoff order with consolidation cost before changing the account structure.

Make both options comparable

Payoff order changes interest and the timing of account closures, but not the monthly budget available. Keep every minimum current and model promotions or secured debts separately when consequences outweigh rate alone.

Inputs for a fair strategy comparison

  • Balance, APR and minimum for every included debt.
  • One fixed monthly budget used by both methods.
  • Promotion deadlines, collateral and delinquency consequences.
  • List every balance, APR, minimum and promotion date.
  • Set one sustainable total monthly budget.
  • Simulate both orders with minimums maintained.
  • Compare interest, finish date and first closure.
  • Choose and automate the rollover rule.

Compare both paths on the same clock

Debt Avalanche vs. Snowball Calculator

Run the same monthly budget through two payoff orders and expose the dollar tradeoff.

Where the comparison stops being fair

  • Stopping payments on non-target debts.
  • Ignoring expiring promotional balances.
  • Reducing the budget after a debt clears.
  • Adding new charges during the comparison.

Questions this decision usually raises

Which method is mathematically cheapest?

Highest-rate-first minimizes interest when all other assumptions are equal.

Can the snowball finish sooner?

With the same budget, final payoff is often similar, but interest and the timing of individual closures differ.

Where do collections or secured debts fit?

Legal, housing, transport and service consequences can override a rate-only order; obtain qualified help where needed.

Evidence behind the comparison

This page explains a calculation, not a personal recommendation. Contract rules and consumer protections vary by product and jurisdiction. Check the current agreement and official guidance before acting.