There's no one-size-fits-all way to pay off debt—but two popular strategies can help you make real progress: the snowball and the avalanche. Both give you a clear plan and build momentum, but in different ways. Whether you're motivated by quick wins or long-term savings, you can pick the method that fits your style—and stick with it all the way to zero.
The snowball method focuses on momentum. You start by paying off your smallest balance first—regardless of interest rate—while making minimum payments on everything else. As each debt disappears, you roll its payment into the next smallest one. With every win, your motivation grows. It's not always the fastest in terms of interest savings, but for many people, the steady progress is what keeps them going.
Let's say you have three debts:
With the snowball method, you'd focus on Credit Card A first because it has the smallest balance. You keep making minimum payments on the other two, but throw any extra cash at Card A until it's paid off. Then, you take the amount you were paying on Card A and apply it to Card B—now you're rolling a bigger "snowball." By the time you reach the biggest debt, you're paying it down with serious momentum.
The avalanche method is all about efficiency. You target the debt with the highest interest rate first, which can save you more money in the long run. Like the snowball, you still make minimum payments on everything else—but your extra cash goes to the most expensive debt. It might take longer to see your first win, but you'll reduce your total interest faster and pay off your debts sooner overall.
Imagine you have the same three debts:
With the avalanche method, you focus on Credit Card A first because it has the highest interest rate—even though it's not the smallest balance. You continue making minimum payments on the other two, but put any extra money toward Card A. Once that's paid off, you move to Card B (15%), and finally the personal loan (10%). This way, you reduce the total interest you pay and can become debt-free faster overall.