Money Fundamentals · Free written sample
Snowball vs. Avalanche
Snowball targets the smallest balance first; avalanche targets the highest APR first. Both keep required payments current and redirect freed payment capacity after a payoff.
What it is
A snowball order prioritizes smaller balances. An avalanche order prioritizes higher APRs. A baseline makes required payments without a targeted extra. Strategy order and tie rules must be explicit.
Why it matters
With consistent assumptions, avalanche generally reduces modeled interest compared with other orders, while snowball may create an earlier small-balance payoff. A plan only works if payments are feasible and sustained.
The mistake
Claiming one strategy always wins ignores missing rates, promotional terms, fees, delinquency, collateral and human follow-through. Sending extra while missing another required payment is not the modeled strategy.
The move
Keep every required payment current, compare both orders with the same extra amount and start date, inspect total interest and timeline, then choose a documented plan you can maintain.
The math nobody does
A fictional comparison uses the same debts and $100 monthly extra for both strategies. Any difference comes from target order; it is not valid if one run changes balances, payments or timing.
Do it now
Open Debt Payoff and compare baseline, snowball and avalanche with identical fictional inputs. Record the payoff order, modeled interest and any incomplete-data warning.
Explore Debt PayoffGeneral financial education and fictional examples. This course does not provide individualized financial, investment, legal, tax, credit-repair or insurance advice. Lesson completion records learning activity, not financial outcomes.
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