๐ The Debt Avalanche: Math First
The Debt Avalanche method focuses on interest rates. You list your debts from highest interest rate to lowest. By paying off the highest rate first (like a 12% student loan), you minimize the total interest you pay over time. This is the mathematically superior choice.
โ๏ธ The Debt Snowball: Motivation First
The Debt Snowball method flips it around. You focus on the smallest balances first. Paying off a $500 balance quickly gives you a powerful psychological "win," keeping you motivated to tackle the larger ones. This is often the best choice for behavior change.
โ๏ธ Comparing the Two
- Avalanche: Saves you the most money. Best if you are disciplined and logic-driven.
- Snowball: Best if you need early momentum to stay the course.
๐ก Pro Tip: Many student loans are split into multiple "groups." You can often target a specific group with extra payments while keeping others on minimums. Check our Student Loan Calculator to see how much an extra $100/month saves you.
Calculate Your Debt Freedom Date โ