| Metric | Snowball | Avalanche |
|---|
Debt Snowball: Pay off the smallest balance first. Once a debt is eliminated, roll its payment into the next smallest. This builds momentum and quick wins.
Debt Avalanche: Pay off the highest interest rate first. This minimizes total interest paid and is mathematically optimal.
Both strategies apply all minimum payments, then direct any extra payment to the priority debt. When that debt is paid off, the freed payment rolls to the next.