Debt Payoff Strategy

Avalanche Saves More Interest. Snowball Builds More Momentum. This Tool Shows Which Beats Both.

Avalanche pays highest APR first (saves more interest). Snowball pays smallest balance first (more quick wins). Add your debts below to see which wins — and how a consolidation loan beats both with one payment and a lower rate.

Your Debts

Name

Balance

APR

Min Payment

Your approximate credit score (for consolidation rate)

Good credit (700+)

~12% APR

Fair credit (640–699)

~20% APR

Poor credit (below 640)

~28% APR

Avalanche — Highest APR First

Payoff order:

Total interest—

Debt-free in—

Total paid—

Snowball — Smallest Balance First

Payoff order:

Total interest—

Debt-free in—

Total paid—

—

Consolidation Beats Both

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Get a Consolidation Loan — One Payment, Lower Rate

A debt consolidation loan replaces multiple payments with one — often at a significantly lower rate. These platforms match you with lenders without impacting your credit score.

Money Pup — up to $50,000

Fast matching. Strong for balances under $50K. Soft credit check only.

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ProvideLoan — up to $100,000

Broader lender network for larger balances. Compare multiple offers at once.

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How this is calculated: Both strategies use the same total monthly payment (sum of all minimum payments) and roll freed-up payments into the next target debt. Consolidation APR estimates are based on Federal Reserve rate environment and credit tier averages as of 2026. Actual rates depend on the individual lender, your full credit profile, debt-to-income ratio, and loan amount. This calculator is for informational purposes only and does not constitute financial advice.

Common Questions About Debt Payoff Strategies

Which is better: debt avalanche or debt snowball?

The debt avalanche mathematically saves more money — you pay the highest APR debt first, reducing total interest. The debt snowball gives psychological wins faster — you pay the smallest balance first regardless of APR. Studies show snowball has higher completion rates despite costing more in interest.

How does debt consolidation compare to avalanche and snowball?

Debt consolidation replaces multiple debts with one loan at a single, typically lower rate. It compresses the payoff timeline more than either DIY method because your effective APR drops. The trade-off: origination fees of 1-6% and no early psychological wins from paying off individual cards.

Will consolidating my debt hurt my credit score?

Applying for a consolidation loan triggers a hard inquiry (temporary 5-10 point drop). But consolidating reduces your credit utilization ratio — the second-largest factor in your score — which typically improves it within 2-3 months. The net effect is usually positive within 6 months.