List your debts, add any extra you can put toward them each month, and compare the two
most common payoff strategies.
Snowball vs. avalanche
SnowballPay minimums on everything, then throw all extra money at the debt with the
smallest balance first. Fastest emotional wins (debts disappear sooner), usually
costs a bit more in total interest.
AvalanchePay minimums on everything, then throw all extra money at the debt with the
highest interest rate first. Mathematically optimal - the least total interest paid
- but the first payoff can take longer to arrive.
Rollover (applies to both)Once a debt is paid off, its minimum payment doesn't disappear - it rolls into
the extra budget for the next target debt, so payoffs accelerate over time.