What is the difference between the debt snowball and debt avalanche?
The snowball method pays your smallest balance first for fast wins, then applies freed-up payments to the next debt. The avalanche method targets the highest annual percentage rate first, minimizing the total interest you pay over the payoff period.
Which strategy is better?
Financially, the avalanche wins because it eliminates high-interest debt fastest. Behaviorally, the snowball can be better because early payoffs build momentum. If the interest difference is small, choose the method you will actually stick with.
Should I try these methods before filing bankruptcy?
If you can pay off your debt within a few years using extra payments, a payoff strategy may beat bankruptcy and protect your credit. If your debt is unmanageable relative to income, Chapter 7 or Chapter 13 may provide faster relief. Compare with a bankruptcy attorney.
How does extra payment affect the result?
Extra monthly payment is applied entirely to principal on the current target debt, which shortens the timeline and cuts interest under both methods. The calculator applies your extra payment on top of all minimums.