Question 1

What is the debt snowball method?

Accepted Answer

The debt snowball method involves paying off your debts from smallest balance to largest, regardless of interest rate. As each debt is cleared, its minimum payment rolls into the next target. It prioritises psychological momentum over mathematical efficiency.

Question 2

What is the debt avalanche method?

Accepted Answer

The debt avalanche method targets the highest-interest debt first. This is mathematically optimal — it minimises the total interest paid over the life of your debts, potentially saving thousands compared to the snowball.

Question 3

Which method should I choose?

Accepted Answer

Choose avalanche if you are motivated by saving money and can stay disciplined without quick wins. Choose snowball if you need early motivation from eliminating debts — research shows it leads to better completion rates for many people.

Question 4

What does "extra monthly payment" mean?

Accepted Answer

This is the amount you add on top of all minimum payments each month. Even $50–100 extra per month can dramatically reduce your payoff timeline and total interest paid.

Question 5

Does the snowball payment really roll over?

Accepted Answer

Yes. When a debt is fully paid off, its minimum payment is added to the pool for the next target debt. This is the key mechanism that accelerates payoff as debts are eliminated.