Debt avalanche vs. debt snowball
How the debt avalanche and debt snowball orders work, a worked three-debt example, and when the two methods give the same answer.
8 min readDebt payoff
Topic
Debt payoff guides
What APR and minimum payments do to a balance, how credit card interest is charged, and how the avalanche and snowball orders compare.
These guides explain what APR and minimum payments do to a balance over time, how credit card interest is actually charged, and how the avalanche and snowball orders compare on the same budget. Each one ends with a scenario you can try in the debt payoff calculator.
Guides
What is APR?
APR is the yearly cost of borrowing as a percentage of your balance. Learn how it becomes a monthly charge and why it drives debt payoff order.
8 min readDebt payoff
Minimum payments explained
How credit card issuers set minimum payments, why paying only the minimum can take years or never end, and how small extra payments change the timeline.
8 min readDebt payoff
How credit card interest works
How credit card interest is charged, from grace periods and daily periodic rates to average daily balances, with a worked example at 18% APR.
7 min readDebt payoff
Calculators for this topic
Debt payoff
Estimate how long it could take to become debt-free and what your debts might cost in interest under avalanche, snowball, custom or minimum-only plans.
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