Multiple Credit Cards Payoff Calculator: Snowball vs Avalanche Method
Calculate and compare snowball and avalanche debt repayment strategies for multiple credit cards. Find the fastest way to become debt-free and save money on interest payments.
Category: Financial
Frequently Asked Questions
What's the difference between the snowball and avalanche methods?
The snowball method focuses on paying off your smallest debts first to build momentum and motivation through quick wins. The avalanche method targets your highest interest rate debts first to minimize interest costs and is mathematically optimal for saving money.
Which debt payoff method is better: snowball or avalanche?
The avalanche method (paying highest interest rate debts first) will save you more money on interest. However, the snowball method (paying smallest balances first) can provide psychological wins that help many people stay motivated. The best method is the one you'll stick with consistently.
How much should I pay toward my credit cards each month?
You should pay as much as you can reasonably afford after covering your essential expenses. At minimum, pay more than the combined minimum payments. Increasing your monthly payment amount even slightly can dramatically reduce your payoff time and total interest paid.
What happens if I can only make minimum payments?
Making only minimum payments (typically 1-3% of the balance) will extend your debt repayment for many years and maximize the interest you pay. Credit card companies set minimum payments low to keep you in debt longer. Even paying just $20 more than the minimum can make a significant difference.