If you have multiple debts, the order you pay them off in changes how much total interest you pay and how fast you finish. Compare the two most common strategies below.
Both methods pay the minimum on every debt, then direct all extra available money toward one target debt at a time — avalanche targets the highest interest rate first, snowball targets the smallest balance first. Once a target debt is fully paid off, its former payment amount rolls into the next target debt, accelerating payoff over time (this is the "snowball" or "avalanche" effect). Avalanche always results in equal or lower total interest since it prioritizes the most expensive debt first, but snowball's early account closures can provide motivation that keeps some people on track.
The avalanche method pays off debts in order of highest interest rate first, while making minimum payments on the rest. This minimizes total interest paid and is mathematically the fastest, cheapest way to become debt-free.
The snowball method pays off debts in order of smallest balance first, regardless of interest rate. It costs slightly more in total interest than the avalanche method, but the quick wins of fully closing accounts can provide motivation that helps some people stick with the plan.
If you're confident you'll stay disciplined regardless of the order, avalanche saves more money. If you've struggled to stick with debt payoff plans before, the psychological wins from snowball's quick account closures may help you actually finish, even at a slightly higher total cost.