Use one complete debt list
Record each balance, APR, minimum payment, due date, promotional expiration, and whether the rate can change. Both strategies fail if the plan ignores a required payment or a deferred-interest deadline.
Choose the ordering rule
Snowball orders debts from smallest balance to largest, regardless of rate. Avalanche orders them from highest APR to lowest. After one balance is cleared, roll its former payment plus the existing extra amount to the next target instead of letting the monthly debt budget shrink.
Compare behavior with total cost
Avalanche has the mathematical interest advantage under stable terms, but a plan that is abandoned does not realize that advantage. Choose a rule you can follow, automate minimums, and review the order when rates or promotional terms change.
Example: three debts and a $500 extra payment
Suppose you owe $2,000 at 18%, $5,000 at 24%, and $8,000 at 8%. Snowball sends the $500 extra to the $2,000 balance; avalanche sends it to the $5,000 balance because 24% is highest. Keep minimums on the other two in both plans, then roll the cleared payment forward.
What to check before you decide
- Continue every required minimum payment; targeting one debt does not pause the others.
- Late fees, changing APRs, transfers, new purchases, and deferred interest can change the comparison.
Sources behind this guide
These official and primary sources let you verify rules, definitions, and terms that may change.
CFPB — How to reduce your debt↗CFPB — Understanding minimum payments↗CFPB — What to do if you cannot pay a credit card bill↗