Both methods start the same way: pay at least the minimum on every debt, then send all extra money to one debt at a time. The difference is which debt you pick.

Avalanche: highest interest rate first

You target the debt with the highest rate. Because that debt costs you the most each month, this method saves the most interest and usually gets you out of debt fastest on paper.

Snowball: smallest balance first

You target the smallest balance, regardless of rate. You may pay somewhat more interest overall, but you close accounts quickly, and those early wins keep many people going.

How to choose

If the rates are close together, the difference in cost is small, so pick the one you’ll stick with. If one debt has a much higher rate, such as a credit card, the avalanche approach is worth it. Either way, once a debt is gone, add its payment to the next one.

Try the credit card calculator to see what an extra payment does. This is general information, not financial advice.

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