When you have several debts, the order you pay them off matters. Two popular methods are the snowball (smallest balance first) and the avalanche (highest interest rate first).

The snowball

You pay minimums on everything and throw any extra money at the smallest balance. When it is gone, its payment rolls into the next one. Quick wins keep motivation high.

The avalanche

Same idea, but you target the highest interest rate first. Mathematically it saves the most interest, though the first win can take longer.

How to decide

• If you need momentum, start with the snowball.
• If the rates are very different (for example 24% versus 5%), the avalanche usually wins by a lot.
• If balances and rates are similar, the difference is small; pick the one you like.

The Debt Snowball Planner and Debt Avalanche Planner templates calculate the payoff date and total interest for you, so you can compare both in a few minutes.