Question 1

What is the debt snowball method?

Accepted Answer

The debt snowball method pays off debts from smallest balance to largest, regardless of interest rate. This gives quick wins and psychological momentum to stay motivated.

Question 2

What is the debt avalanche method?

Accepted Answer

The debt avalanche method pays off debts from highest interest rate to lowest. This minimizes total interest paid and is mathematically optimal.

Question 3

Which is better — snowball or avalanche?

Accepted Answer

Avalanche saves more money on interest, but snowball provides faster emotional wins. The best method is the one you stick with.

Question 4

How much extra should I pay toward debt?

Accepted Answer

Even an extra $50-100 per month can dramatically reduce your payoff time. Use this calculator to see how different extra payment amounts affect your debt-free date.