Getting out of debt isn't just about math; it's about behavior. That's why the debate between Dave Ramsey's "Snowball" and financial analysts' "Avalanche" continues.
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Input your debts and see which method saves more money.
Method 1: The Debt Snowball
How it works: List debts from smallest balance to largest. Ignore interest rates. Pay minimums on everything except the smallest debt. Attack the small one with everything you have.
Why it works: Psychology. Getting a "Win" quickly (paying off a small card) motivates you to keep going.
Method 2: The Debt Avalanche
How it works: List debts from highest interest rate to lowest. Attack the one with the highest APR first.
Why it works: Math. By eliminating high interest first, you pay less total money over time.
Which should you choose?
If you need motivation, choose Snowball. If you are disciplined and hate wasting money on interest, choose Avalanche. Our calculator helps you compare both side-by-side.