Digging Out: Snowball vs Avalanche

🧠 Why it matters

Two popular debt-payoff strategies. The AVALANCHE: pay minimums on everything, then throw all extra money at your HIGHEST-interest debt first — mathematically the cheapest, saves the most interest. The SNOWBALL: attack your SMALLEST balance first regardless of rate, score a quick win, then roll that freed-up payment into the next — psychologically powerful because early victories keep you motivated. Avalanche saves more money; snowball keeps more people in the game. The best method is the one you'll actually finish.

🌍 In the real world

💡 The avalanche is technically optimal, but plenty of people quit before it pays off. The snowball 'wastes' a little interest but delivers a satisfying paid-off account in weeks — and that little dopamine hit is often what carries someone all the way to debt-free. Motivation has real financial value.

📌 Takeaways

• Avalanche: highest-interest debt first — saves the most money
• Snowball: smallest balance first — fast wins, more motivation
• The best method is the one you'll actually stick with

✅ Test yourself