Paying off the highest-interest debt first (avalanche) minimises total interest paid — paying off the smallest balance first (snowball) clears accounts faster and keeps momentum, even though it usually costs more overall.
The math strongly favours avalanche, but the psychology of visible progress is a real factor in whether a payoff plan actually gets followed through to the end — the "better" method is the one you’ll stick with.
Both are beaten by a balance transfer or a consolidation loan at a lower rate, which changes the interest rather than the order. And if one debt can repossess your car or your home, it goes first regardless of its rate or its size.
Estimate with the rule, then check it against the calculator that models it properly.
Open Debt Payoff Calculator →Paying off the highest-interest debt first (avalanche) minimises total interest paid — paying off the smallest balance first (snowball) clears accounts faster and keeps momentum, even though it usually costs more overall. The math strongly favours avalanche, but the psychology of visible progress is a real factor in whether a payoff plan actually gets followed through to the end — the "better" method is the one you’ll stick with.