If you owe money on several cards or loans, the order you pay them off matters almost as much as the amount. The two best-known methods are the debt snowball and the debt avalanche. Both work; they just optimise for different things.
See how long a single debt will take with the free Debt Payoff Calculator.
List every debt first
Write down every balance, its interest rate (APR) and the minimum payment, including store cards, medical bills, buy-now-pay-later plans and money owed to family. You can't plan around a debt you've left off the list. Then add up the minimums: that total must be paid every month no matter which method you choose.
The debt snowball: smallest balance first
Order your debts from the smallest balance to the largest. Pay every minimum, and put all your extra money on the smallest. When it's gone, add its whole payment to the next smallest, so the payment "snowballs". The appeal is momentum: you clear a debt quickly, which helps many people keep going.
The debt avalanche: highest rate first
Order debts from the highest APR to the lowest, and send the extra money to the most expensive one. Mathematically the avalanche usually costs less interest overall, because the expensive balance shrinks fastest. The trade-off is that the first payoff can take longer if the highest-rate debt is also large.
Which should you choose?
If your balances are similar or you need early wins to stay motivated, the snowball is a reasonable choice. If one debt has a much higher rate than the rest, the avalanche will usually save more. The difference between them is often smaller than the difference between paying only minimums and paying any extra at all.
The extra payment is what matters
At 22.9% APR, a $6,400 balance paid at $250 a month takes about 36 months and costs roughly $2,470 in interest. Add $75 a month and it falls to about 25 months, saving around $765. The free Extra Payment Savings Calculator shows the months and interest saved for your numbers.
Watch for minimums that don't cover interest
If a minimum payment is less than the interest charged each month, that balance will never fall. Fix that first: call the lender, ask about a hardship plan, or move it to the top of your order.
Track it monthly
Write each new balance down when the statement arrives and mark each payoff. The Debt Snowball & Avalanche Planner orders your debts by either method and estimates months and interest; the Printable Debt Payoff Tracker gives you colour-in progress charts for the fridge.
This guide is general information, not financial advice. If debt feels unmanageable, a non-profit credit counsellor can help you review your options.