Debt Payoff Calculator

Avalanche (highest interest rate first) always costs less in total interest, sometimes by hundreds or thousands of dollars. Snowball (smallest balance first) clears individual debts faster early on, which helps some people stay on plan. If you have quit a payoff plan before, start with snowball. If you have not had that problem, pick avalanche and keep the savings.

With the same payment amount, unchanged rates, and no special fees or promotions, avalanche minimizes total interest by directing extra money to the highest-rate debt first. Snowball can work better in practice when early momentum keeps you on the plan long enough to finish. If your smallest debt clears in two or three months, that quick win can matter more than the extra interest you pay along the way.

When one debt carries a much higher rate than the others, say a 24% credit card next to a 7% car loan, the interest savings from targeting that card first add up quickly. Avalanche also has a stronger edge when all your balances are roughly the same size, since snowball loses its motivational advantage when no single debt closes fast.

The Federal Reserve's May 2026 G.19 release reported an average APR of 20.94% across all credit card accounts and 22.15% for accounts assessed interest. These are dated national averages, not a current quote for your card. Use the APR on your latest statement when comparing payoff methods.

It depends on whether you can get a genuinely lower rate. A balance-transfer card with a 0% intro period, or a personal loan at a rate below your highest-rate card, reduces the interest that accrues while you pay down the balance. Consolidation only helps if the new rate (including origination or transfer fees) is lower than what you are paying now, and you stop adding new charges to the accounts you cleared.