How to use it
List each debt on its own line, in the format name:balance:monthly interest rate (%):minimum monthly payment. For example: Credit card:3000:12:150. Also enter how much extra money you have available each month, beyond the minimum payments, to speed up payoff.
The snowball strategy
Here, you focus the extra payment on the debt with the smallest balance, paying only the minimum on the rest. Once the smallest debt is paid off, the amount that was going to it "rolls over" to the next smallest, like a snowball growing. The advantage is psychological: paying off debts quickly builds motivation to keep going.
The avalanche strategy
Here, the extra payment goes to the debt with the highest interest rate, regardless of balance. Mathematically, this strategy almost always results in less total interest paid and a faster overall payoff, since it tackles the most expensive debt first.
Which one to choose
If your goal is to save the most money on interest, avalanche usually wins. If you need quick wins to stay motivated and not give up on the plan, snowball can work better in practice, even if it costs a bit more in interest.
Frequently asked questions
Which strategy saves more money?
Avalanche (tackling the highest interest rate first) almost always results in less total interest paid, because it reduces the most expensive balance faster.
Why would anyone choose snowball, then?
Because paying off small debts quickly creates a sense of progress and motivation, which helps many people stick with the plan until the end — even if it costs slightly more in total interest.
How do I enter the debt's interest rate?
Use the monthly interest rate as a percentage. If your card charges an annual rate, convert it to an approximate monthly rate before entering it.
What if I have no extra money available?
You can still compare both strategies with extra set to zero — in that case, the result shows how long it would take paying only the minimums on each debt.