Understanding the Two Most Popular Debt Payoff Strategies

When you're drowning in debt, choosing the right payoff strategy can mean the difference between financial freedom and years of unnecessary interest payments. Two methods dominate the personal finance landscape: the debt snowball and debt avalanche approaches. While both can help you become debt-free, they work in fundamentally different ways and suit different personality types and financial situations.

The debt snowball method focuses on paying off your smallest debts first, regardless of interest rates, creating psychological momentum through quick wins. The debt avalanche method prioritizes debts with the highest interest rates first, mathematically optimizing your payoff strategy to save the most money over time.

Understanding which approach aligns with your financial goals, personality, and circumstances is crucial for long-term success. This comprehensive guide will walk you through both strategies, provide real-world examples, and help you determine which method will work best for your unique situation.

The Core Philosophy Behind Each Method

The fundamental difference between these strategies lies in what they prioritize. The debt snowball operates on the principle that human behavior and motivation matter more than mathematical perfection. It recognizes that personal finance is often more personal than finance—that seeing tangible progress quickly can provide the emotional fuel needed to stick with a debt payoff plan for months or years.

Conversely, the debt avalanche is rooted in pure financial mathematics. It acknowledges that compound interest works against you when you're in debt, and the most efficient way to minimize total interest paid is to eliminate the highest-rate debts first. This method appeals to those who can maintain motivation through spreadsheets and long-term projections rather than immediate gratification.

What Makes These Strategies So Effective

Both methods share several critical success factors that make them superior to random or minimum-payment approaches. First, they both require you to stop accumulating new debt—a non-negotiable foundation for any successful debt elimination plan. Second, they create a structured, systematic approach that removes emotional decision-making from the monthly payment process.

Most importantly, both strategies employ the concept of "payment momentum." Once you pay off one debt, you redirect that entire payment amount to the next target debt, creating an accelerating effect. For example, if you were paying $150 monthly on a credit card you just eliminated, that full $150 gets added to your next target debt's minimum payment. This compounding effect is what creates the "snowball" or "avalanche" acceleration over time.

Key Factors That Influence Strategy Success

Your success with either method depends on several personal and financial factors. Debt composition plays a crucial role—if you have many small debts with similar interest rates, the snowball method might work well. However, if you have a few large debts with dramatically different rates (like a 6% student loan versus a 24% credit card), the avalanche method becomes more compelling.

Available cash flow is equally important. Someone with $500 extra monthly for debt payments will see faster results with either method compared to someone with only $50 extra. The larger your surplus, the less the choice between methods matters in terms of timeline, though the total interest savings difference remains significant.

Your personality type cannot be overlooked. Research shows that people who need frequent positive reinforcement tend to succeed better with the snowball method, while analytically-minded individuals who can delay gratification often thrive with the avalanche approach. There's no shame in choosing the method that matches your psychological makeup—the best debt payoff strategy is the one you'll actually complete.

The Math vs. Psychology Debate

Financial experts remain divided on which method is superior, and for good reason. Studies by Northwestern's Kellogg School of Management found that people using the snowball method were more likely to eliminate all their debts successfully, even though they paid more in total interest. The psychological boost from early victories proved more valuable than the mathematical optimization of the avalanche method for many participants.

However, this doesn't make the avalanche method inferior. For disciplined individuals who can maintain motivation without frequent wins, the avalanche method can save hundreds or even thousands of dollars in interest payments, especially with high-rate debts like credit cards or payday loans.

The key insight is that both methods are infinitely better than making only minimum payments or attacking debts randomly. Whether you save $500 or $1,000 in interest is less important than becoming debt-free, and either structured approach will get you there faster than unstructured efforts.

The Debt Snowball Method: Psychology Over Mathematics

The debt snowball method, popularized by financial expert Dave Ramsey, prioritizes paying off your smallest debts first while making minimum payments on all other debts. Once you eliminate the smallest debt, you roll that payment amount into the next smallest debt, creating a "snowball" effect that grows larger with each paid-off debt.

How the Debt Snowball Works

Here's the step-by-step process for implementing the debt snowball method:

List all your debts from smallest to largest balance - Include credit cards, personal loans, student loans, and any other consumer debt (exclude your mortgage for now)
Make minimum payments on all debts - This keeps you current and avoids late fees or penalty rates
Put any extra money toward the smallest debt - Every dollar beyond the minimum payment goes to your smallest balance
Once the smallest debt is paid off, roll that entire payment to the next smallest debt - This creates the "snowball" effect where your payments grow larger
Repeat until all debts are eliminated - Continue the process, watching your payment power increase with each eliminated debt

Real-World Debt Snowball Example

Let's examine Sarah's debt situation to see how the snowball method works in practice:

Credit Card A: $800 balance, 18% APR, $25 minimum payment
Personal Loan: $3,200 balance, 12% APR, $95 minimum payment
Credit Card B: $5,500 balance, 22% APR, $110 minimum payment
Student Loan: $12,000 balance, 6% APR, $150 minimum payment

Sarah has an extra $200 per month to put toward debt payoff. Using the snowball method, she would focus on Credit Card A first, paying $225 total ($25 minimum + $200 extra). After 4 months, Credit Card A is paid off.

Next, she'd tackle the personal loan with $295 per month ($95 minimum + $200 extra from her budget + $25 from the eliminated credit card payment). This loan would be paid off in approximately 11 additional months. The process continues, with each eliminated debt adding to her payment power for the next smallest balance.

Psychological Benefits of the Debt Snowball

The debt snowball's greatest strength lies in its psychological impact. Eliminating smaller debts quickly provides immediate gratification and builds momentum. Studies in behavioral economics show that people are more likely to stick with programs that provide early, visible wins.

This method works particularly well for people who:

Feel overwhelmed by their debt situation
Have struggled with motivation in previous debt payoff attempts
Need to see progress quickly to stay committed
Have multiple small debts that feel burdensome
Respond well to milestone achievements

The Debt Avalanche Method: Mathematical Optimization

The debt avalanche method takes a purely mathematical approach to debt elimination. You prioritize debts with the highest interest rates first, regardless of balance size, while making minimum payments on all other debts. This strategy minimizes the total interest paid over time and typically results in faster debt elimination from a purely financial perspective.

How the Debt Avalanche Works

Follow these steps to implement the debt avalanche strategy:

List all your debts from highest to lowest interest rate - Focus on the annual percentage rate (APR) rather than balance size
Make minimum payments on all debts - Maintain good standing on all accounts
Direct all extra payments toward the highest-interest debt - Every additional dollar goes to your most expensive debt
Once the highest-interest debt is eliminated, move to the next highest rate - Continue focusing on the most expensive remaining debt
Repeat until debt-free - Maintain this approach until all consumer debts are eliminated

Real-World Debt Avalanche Example

Using Sarah's same debt situation, let's see how the avalanche method would work:

Credit Card B: $5,500 balance, 22% APR, $110 minimum payment (highest rate)
Credit Card A: $800 balance, 18% APR, $25 minimum payment
Personal Loan: $3,200 balance, 12% APR, $95 minimum payment
Student Loan: $12,000 balance, 6% APR, $150 minimum payment (lowest rate)

With her extra $200 per month, Sarah would pay $310 toward Credit Card B ($110 minimum + $200 extra). This debt would be eliminated in approximately 18 months. Next, she'd focus the full $335 payment ($310 from Credit Card B + $25 minimum from Credit Card A) on Credit Card A, eliminating it in about 2.5 additional months.

Financial Benefits of the Debt Avalanche

The debt avalanche method typically results in:

Lower total interest paid - By eliminating high-interest debt first, you reduce the overall cost of being in debt
Faster debt elimination timeline - Mathematical optimization usually means becoming debt-free sooner
Better long-term financial outcomes - More money saved means more available for other financial goals
Protection against compound interest - High-interest debt compounds quickly, so eliminating it early saves significantly

Comparing the Numbers: Which Method Saves More Money?

To truly understand the financial impact of each method, let's run a detailed comparison using Sarah's debt scenario with specific calculations.

Debt Snowball Results

Following the snowball method with $200 extra monthly:

Total time to debt freedom: 46 months
Total interest paid: $4,127
Total amount paid: $25,627
First debt eliminated: Month 4 (Credit Card A)
Psychological wins: 4 separate debt eliminations over the journey

Debt Avalanche Results

Following the avalanche method with $200 extra monthly:

Total time to debt freedom: 41 months
Total interest paid: $3,421
Total amount paid: $24,921
First debt eliminated: Month 18 (Credit Card B)
Money saved vs. snowball: $706

In this example, the debt avalanche method saves Sarah $706 and eliminates her debt 5 months sooner. Use our Debt Payoff Calculator to run similar comparisons with your specific debt situation and see which method works better for your numbers.

When the Gap Widens

The savings advantage of the debt avalanche method becomes more pronounced when:

Interest rate spreads are large - If you have debts ranging from 6% to 29% APR, focusing on high-rate debt first saves significantly more
High-interest balances are substantial - Large balances at high rates compound the savings benefit
You have many debts - More debts typically mean greater interest rate variation
Your payoff timeline is long - The longer you're in debt, the more compound interest affects your total cost

The Hybrid Approach: Best of Both Worlds

Some financial experts recommend a modified approach that combines elements of both strategies. This hybrid method recognizes that pure mathematical optimization isn't always practical for real people with complex motivations.

Modified Snowball Strategy

Start with the debt snowball but make one important modification: if you have any debts with extremely high interest rates (typically above 25% APR), tackle those first regardless of balance. This approach captures most of the psychological benefits while avoiding the most expensive debt traps.

Here's how to implement this modified approach effectively:

Step 1: Identify High-Interest Outliers
Scan your debt list for any obligations with interest rates above 25%. Common culprits include payday loans (300-400% APR), cash advances (28-30% APR), and certain store credit cards (26-29% APR). These debts can double your balance in just 2-3 years if left unchecked.

Step 2: Create a Two-Tier System
Divide your debts into two categories:

Tier 1 (Emergency Priority): Debts above 25% APR
Tier 2 (Snowball Order): All remaining debts arranged by balance, smallest to largest

Step 3: Execute the Modified Plan
Attack Tier 1 debts using the avalanche method (highest interest first), then proceed with the traditional snowball approach for Tier 2 debts. This strategy typically saves you 60-80% of the potential interest savings from a pure avalanche while maintaining 90% of the psychological momentum from the snowball.

The "Snowflake" Addition

Regardless of which primary method you choose, incorporate "debt snowflakes" - small, irregular payments made whenever you find extra money. Sources of snowflakes include:

Tax refunds
Work bonuses
Cash gifts
Rebate checks
Side hustle income
Money from selling unused items

Apply these windfalls using your chosen method's prioritization system to accelerate your progress.

Maximizing Your Snowflake Strategy

The average American household can generate $2,000-4,000 annually in debt snowflakes with intentional effort. Here's how to systematically capture these opportunities:

Micro-Snowflakes (Weekly: $5-50)

Round up purchases to the nearest $5 and apply the difference to debt
Use cashback apps like Ibotta or Rakuten and immediately transfer earnings
Save loose change in a jar and make monthly debt payments
Apply coupon savings directly to debt rather than general spending

Mini-Snowflakes (Monthly: $50-200)

Freelance or gig work income
Selling items on Facebook Marketplace, eBay, or Poshmark
Unused subscription refunds
Insurance or utility overpayment refunds
Credit card or bank account bonuses

Major Snowflakes (Quarterly/Annually: $200-2,000+)

Tax refunds (average $3,200 nationally)
Work bonuses or profit-sharing
Inheritance or monetary gifts
Insurance claim payouts
Investment gains or dividend payments

The Avalanche-Snowball Rotation Method

Another hybrid approach involves alternating between methods based on your psychological state and progress milestones. Start with the debt snowball to build momentum, then switch to the avalanche method once you've eliminated 2-3 debts. This rotation can be particularly effective for people who need initial motivation but can handle the mathematical approach once they've experienced some success.

Rotation Triggers:

Switch to avalanche after paying off your first two smallest debts
Return to snowball if you feel overwhelmed or lose motivation
Use seasonal switches (snowball during stressful months, avalanche during focused periods)

This flexible approach acknowledges that debt repayment is a marathon, not a sprint, and your psychological needs may change throughout the journey. The key is maintaining forward momentum while optimizing for both emotional and financial efficiency.

Choosing the Right Strategy for Your Situation

The best debt payoff method depends on your personal circumstances, psychology, and financial situation. Consider these factors when making your decision:

Choose Debt Snowball If You:

Need motivation and quick wins - If you've struggled with debt payoff motivation in the past
Have many small debts - Multiple small balances can create mental burden regardless of interest rates
Value simplicity - The snowball method is easier to understand and implement
Have similar interest rates across debts - If your rates don't vary dramatically, the financial advantage of the avalanche is minimal
Struggle with financial discipline - Quick wins can build the habits needed for long-term success

Choose Debt Avalanche If You:

Are motivated by financial optimization - If saving money is your primary motivator
Have significant interest rate spreads - Large differences in APRs make the mathematical advantage more pronounced
Have large high-interest balances - Big balances at high rates are expensive to carry
Are naturally disciplined - If you can stick with a plan even without immediate gratification
Have a longer-term perspective - If you can wait for results while optimizing the outcome

Consider Your Personality Type

Your success with either method largely depends on your personality and motivational drivers:

Results-oriented individuals often prefer the debt avalanche because they're motivated by optimal outcomes and can delay gratification for better long-term results.

Process-oriented individuals may prefer the debt snowball because they're motivated by consistent progress and milestone achievements along the way.

Implementation: Getting Started with Your Chosen Method

Once you've decided on your approach, proper implementation is crucial for success. Here's how to set yourself up for debt elimination success:

Step 1: Complete Debt Inventory

Create a comprehensive list of all your consumer debts including:

Creditor name
Current balance
Interest rate (APR)
Minimum monthly payment
Payment due date

Don't include your mortgage in this list unless you plan to pay it off early after eliminating consumer debt.

Step 2: Calculate Available Payment Amount

Determine how much extra money you can dedicate to debt payoff each month. Use our Budget Calculator to identify areas where you can cut expenses or increase income. Common sources of extra payment money include:

Reducing entertainment expenses
Cutting subscription services
Eating out less frequently
Taking on side work
Selling unused belongings

Step 3: Set Up Automatic Payments

Automate your minimum payments to avoid late fees and penalty rates. Then manually make your extra payments to your target debt each month. This hybrid approach ensures you never miss a payment while maximizing your debt reduction efforts.

Step 4: Track Your Progress

Create a visual tracking system to monitor your progress. This might include:

A debt thermometer showing your total debt declining
Individual progress bars for each debt
Monthly snapshots of all balances
Celebration markers for eliminated debts

Advanced Strategies to Accelerate Either Method

Regardless of which base method you choose, these advanced strategies can help you become debt-free faster:

Balance Transfer Optimization

If you have good credit, consider transferring high-interest credit card debt to a 0% APR promotional offer. This can temporarily convert a debt avalanche scenario into a debt snowball situation, giving you time to pay down principal without accumulating interest.

Important considerations:

Transfer fees typically range from 3-5% of the transferred amount
Promotional rates are temporary (usually 12-21 months)
You need discipline to avoid accumulating new debt on the cleared cards
Have a payoff plan that eliminates the transferred debt before the promotional rate expires

Income Optimization

Increasing your income can dramatically accelerate either payoff method:

Negotiate a raise - Research your market value and present a compelling case
Develop side income streams - Freelancing, rideshare driving, or selling products online
Monetize skills - Tutoring, consulting, or teaching in your area of expertise
Optimize tax withholdings - Adjust your W-4 to get more money in each paycheck instead of a large refund

Expense Reduction Strategies

Every dollar you cut from expenses can go toward debt elimination:

Housing costs - Consider downsizing, getting roommates, or refinancing
Transportation - Evaluate your car payment, insurance rates, and commuting costs
Food expenses - Meal planning, bulk buying, and reducing restaurant visits
Subscription audit - Cancel unused services and negotiate better rates on essential services

Common Mistakes to Avoid

Both debt payoff methods can fail if you make these common errors:

Mistake 1: Not Addressing the Root Cause

Paying off debt without changing the behaviors that created it often leads to accumulating new debt. Address underlying issues like:

Lack of emergency fund
Overspending habits
Using credit for regular expenses
Not tracking spending

The most effective approach involves conducting a "debt autopsy" to understand exactly how you accumulated each balance. Review your credit card statements from the past 12-24 months and categorize every purchase. You might discover that 60% of your debt came from dining out, 25% from impulse purchases, and 15% from genuine emergencies. This analysis reveals specific behavioral patterns to target.

Create replacement behaviors for each problematic spending pattern. If dining out contributed significantly to your debt, establish a weekly meal prep routine and set a realistic restaurant budget. If impulse purchases were an issue, implement a 48-hour waiting period for non-essential purchases over $50. Track these new behaviors alongside your debt payments to ensure lasting change.

Mistake 2: Neglecting the Emergency Fund

While aggressive debt payoff is important, you need at least $1,000 in emergency savings to avoid creating new debt when unexpected expenses arise. Build this small emergency fund before focusing all extra money on debt elimination.

However, many people struggle with the "chicken-and-egg" dilemma of saving while drowning in high-interest debt. The solution is finding the right balance point for your situation. If you have credit cards charging 24% APR, prioritize building your $1,000 emergency fund quickly—even if it means temporarily reducing debt payments by $200-300 per month.

Consider these emergency fund strategies based on your debt severity:

High-interest debt (20%+ APR): Build $500-750 emergency fund, then attack debt aggressively
Moderate-interest debt (10-19% APR): Maintain the standard $1,000 emergency fund
Low-interest debt (under 10% APR): Consider building a larger emergency fund of $1,500-2,000

Keep your emergency fund in a separate high-yield savings account that's not easily accessible through your regular checking account. This prevents the temptation to use it for non-emergencies while still keeping it available for true crises.

Mistake 3: Closing Paid-Off Credit Cards

Closing credit cards can hurt your credit score by reducing your available credit and shortening your credit history. Instead, keep paid-off cards open with zero balances to improve your credit utilization ratio.

Your credit utilization ratio—the percentage of available credit you're using—accounts for 30% of your credit score. If you have $20,000 in total credit limits and $4,000 in balances, your utilization is 20%. Closing a paid-off card with a $5,000 limit would increase your utilization to 27%, potentially dropping your score by 10-20 points.

However, there are strategic exceptions to the "never close cards" rule:

Annual fee cards: Close if the benefits don't justify the cost and you can't get the fee waived
Temptation cards: Close if keeping them open leads to overspending, but only after paying down other balances
Too many cards: If you have 10+ cards, closing newer ones with low limits may simplify management without major score impact

Before closing any card, calculate the impact on your utilization ratio. If closing a card would push your utilization above 30%, wait until you've paid down other balances first. For cards you keep open, use them occasionally for small purchases and pay them off immediately to keep them active.

Mistake 4: Not Staying Committed During Setbacks

Debt payoff is rarely a straight line. Unexpected expenses, income changes, or motivation dips are normal. Have a plan for getting back on track rather than abandoning your strategy entirely.

Create a "setback protocol" before you encounter challenges. This should include specific triggers and responses:

Financial Setbacks: If an emergency forces you to add $1,000 to your credit card debt, immediately pause your debt payoff plan and rebuild your emergency fund to $1,000. Then resume your original strategy with the new debt amount included in your calculations.

Income Reduction: If you lose your job or face reduced hours, immediately switch to minimum payments on all debts while securing your basic needs. Once your income stabilizes, recalculate your available payment amount and adjust your timeline accordingly. A 6-month income disruption might extend your debt-free date by 8-12 months, but that's better than giving up entirely.

Motivation Plateaus: Research shows motivation naturally wanes after 3-4 months of any behavior change. Plan for this by scheduling monthly "debt dates" with yourself or an accountability partner to review progress and recommit to your goals. Prepare motivational tools like debt thermometers, celebration milestones, or visual reminders of your debt-free goals.

Track both your financial progress and your behavioral consistency. If you miss debt payments for two consecutive months, that's a red flag requiring immediate intervention—not abandonment of your strategy. Consider whether you need to adjust your target payment amount, seek additional income sources, or address underlying spending issues that have resurfaced.

Monitoring Progress and Staying Motivated

Long-term success requires ongoing motivation and progress tracking. Here are proven strategies for maintaining momentum:

Create Visual Progress Indicators

Visual representations of your progress can provide powerful motivation:

Debt thermometer - Color in sections as your total debt decreases
Chain method - Mark an X on a calendar for each day you stick to your plan
Progress photos - Take monthly screenshots of your account balances
Milestone rewards - Plan small celebrations for major achievements

Beyond these basic visual tools, consider creating a comprehensive debt dashboard using spreadsheet software or debt tracking apps. Set up a simple chart that shows your debt-to-income ratio declining over time, or create a bar graph displaying each debt balance shrinking month by month. Many people find success with a physical chart posted in a visible location—studies show that visual cues in your environment can increase goal achievement by up to 42%.

For digital tracking, apps like Mint, YNAB, or even a simple Google Sheets template can automatically update your progress. Create monthly snapshots showing your total debt reduction, interest saved, and projected payoff date. Some people prefer creating a "debt-free countdown" showing days remaining until their target payoff date, which creates urgency and excitement as the number decreases.

Regular Financial Check-ins

Schedule monthly reviews of your debt elimination progress:

Update all account balances
Calculate total progress made
Adjust strategy if circumstances change
Celebrate wins and learn from setbacks

Structure your monthly check-ins as formal meetings with yourself, lasting 30-45 minutes. Begin by gathering statements from all creditors and updating your tracking system. Calculate three key metrics: total debt remaining, monthly progress rate, and projected payoff timeline. If you're paying an average of $500 per month toward debt and reduced your balance by $450 last month, investigate what caused the $50 shortfall—was it additional interest, fees, or reduced payments?

During each review, assess whether your current strategy remains optimal. If interest rates have changed, new promotional offers have appeared, or your income has shifted, you may need to adjust your approach. Document any challenges you faced and brainstorm solutions. For example, if you struggled to make extra payments due to irregular income, consider setting up automatic transfers on days you typically receive paychecks.

Use our Net Worth Calculator to track your overall financial progress as debt decreases and assets grow.

Build Support Systems

Debt elimination can feel isolating, but support systems help maintain motivation:

Find an accountability partner with similar goals
Join online communities focused on debt elimination
Share appropriate updates with supportive friends and family
Consider working with a fee-only financial planner for guidance

When selecting an accountability partner, choose someone who shares similar financial goals and communication styles. Establish clear expectations: Will you check in weekly or monthly? Share specific numbers or general progress updates? Successful accountability partnerships often involve regular phone calls, text updates, or even shared spreadsheets where both parties can see each other's progress.

Online communities like Reddit's r/personalfinance, r/DaveRamsey, or Facebook groups dedicated to debt elimination provide 24/7 support and motivation. Participate actively by celebrating others' victories and sharing your own challenges. Many people report that helping others with their debt questions reinforces their own commitment to the process.

Overcoming Motivation Plateaus

Most people experience motivation dips around months 6-12 of their debt elimination journey. Combat this by varying your approach: switch between snowball and avalanche methods temporarily, set mini-challenges like "debt-free weeks" where you avoid all discretionary spending, or gamify the process by competing with your past self to beat previous months' paydown amounts.

Create a "why list" documenting your reasons for becoming debt-free, from reducing stress to funding dream vacations. Review this list during difficult moments. Research shows that people who clearly define their motivations are 2.5 times more likely to achieve their financial goals compared to those without written reasons.

Celebrating Milestones Appropriately

Plan meaningful but budget-friendly celebrations for major achievements: paying off your first debt, reaching 25%, 50%, and 75% completion, and ultimately becoming debt-free. Effective celebration ideas include free activities like hiking, potluck dinners with friends, or small purchases you've been deferring (under $25-50). Avoid celebrations that create new debt or significantly delay your progress—the goal is acknowledging achievement while maintaining momentum toward your ultimate objective.

Life After Debt: Transitioning to Wealth Building

Successfully eliminating debt is just the beginning of your financial journey. Once you're debt-free, redirect your monthly debt payments toward wealth-building activities:

Immediate Post-Debt Priorities

Build a full emergency fund - Expand your emergency savings to cover 3-6 months of expenses
Maximize employer retirement contributions - Get the full company match on 401(k) contributions
Consider additional retirement savings - Contribute to IRAs or increase 401(k) contributions beyond the match
Save for specific goals - House down payment, children's education, or other major purchases

Maintaining Debt-Free Status

Staying debt-free requires ongoing vigilance:

Use credit cards responsibly - Pay balances in full each month if you use credit
Maintain your budget - Continue tracking expenses and living below your means
Avoid lifestyle inflation - Don't automatically increase spending as income grows
Plan for major purchases - Save cash instead of financing non-essential items

Whether you choose the debt snowball or debt avalanche method, the most important factor is starting your debt elimination journey today. Both strategies can lead to financial freedom when implemented consistently with dedication and discipline. The method that works best is the one you'll actually stick with until you achieve your goal of becoming debt-free.

Use our Debt Comparison Calculator to model both strategies with your specific debts and see which approach saves you more money while considering your personal motivational needs. Remember, the perfect strategy executed imperfectly beats the imperfect strategy never started.