Debt snowball vs debt avalanche: which is better?
Math says avalanche (highest interest first) — saves the most money. Behavioral research says snowball (smallest balance first) — early wins build motivation that keeps people on track. Pick the one you'll actually finish. For most people, that's the snowball.
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Math says avalanche (highest interest first) — saves the most money. Behavioral research says snowball (smallest balance first) — early wins build motivation that keeps people on track. Pick the one you'll actually finish. For most people, that's the snowball. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.
For a deeper analysis, use one of the related tools below — they take your specific income, debt, location, and goals as inputs and produce a tailored answer.