Question 1

Is avalanche or snowball better for $20,000 on 3 cards?

Accepted Answer

Avalanche (targeting the highest APR first, currently 24.99%) will save you the most money in total interest. Snowball (targeting the smallest balance first, $4,000) costs slightly more but gives you faster psychological wins. The calculator above shows the exact dollar difference for your specific situation. For most people, the difference is a few hundred dollars — pick the method you'll actually stick with.

Question 2

What is the debt avalanche method?

Accepted Answer

The avalanche method means making minimum payments on all your debts, then putting every extra dollar toward the card with the highest APR. It minimizes total interest paid across all your debts. With 3 cards, the calculator above shows you exactly which card to target first and how much you'll save compared to other strategies.

Question 3

What is the debt snowball method?

Accepted Answer

The snowball method means making minimum payments on all debts, then attacking the smallest balance first. Once it's paid off, you roll that payment into the next smallest. Research from Harvard Business Review found people using snowball are more likely to actually eliminate their debt because the quick wins build momentum.

Question 4

What is the hybrid debt payoff method?

Accepted Answer

The hybrid method combines both approaches: if a small balance can be knocked out quickly (within a month or two of extra payments), take that win first. Otherwise, target the highest APR card. This gives you the psychological boost of snowball with most of the interest savings of avalanche. It's what many financial coaches actually recommend.

Avalanche vs Snowball: $20,000 on 3 Cards — Calculator