Is debt avalanche always better?

Mathematically, yes. Because you target the highest interest rates first, the Avalanche method will always result in the lowest possible total interest paid and the fastest payoff time compared to Snowball.

Why does the Snowball method feel easier?

It leverages psychology. By clearing small balances quickly, you get immediate positive reinforcement ("wins"). This dopamine hit keeps many people motivated to stick with their plan, whereas Avalanche can feel like a slow grind at the start.

Does the Avalanche method save more interest?

Yes, significantly. On high-interest debt like credit cards (36%-42% APR), paying off the principal faster prevents interest from compounding. The savings compared to Snowball can often be thousands of rupees.

Can I switch strategies midway?

Absolutely. Many people start with Snowball to clear a few small annoying bills, then switch to Avalanche once they feel confident and want to optimize for savings. The most important thing is to keep paying extra.

Does making an extra payment change results?

Drastically. Even a small extra payment (e.g., ₹1,000/month) gets applied 100% to the principal (after interest). This reduces your balance faster, lowering future interest charges and shortening your loan tenure by months or years.

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Debt Avalanche vs Snowball Calculator

Compare Avalanche and Snowball strategies to find your fastest path to debt freedom.

Should you pay off the debt with the highest interest rate first or the one with the smallest balance? Our Debt Avalanche vs Snowball Calculator mathematically compares both strategies.

How the Debt Avalanche Method Works

The Debt Avalanche method is a mathematically optimal strategy focused on minimizing the total interest you pay.

You make the minimum monthly payment on all your existing loans.
Any extra money is directed to the debt with the highest interest rate.
This creates an "avalanche" that destroys your most expensive debt first—essential for Indian Credit Cards which charge 36%-42% APR.

How the Debt Snowball Method Works

The Debt Snowball method is a behavioral strategy fueled by quick wins.

You maximize payments on the debt with the smallest balance.
When the smallest debt is gone, you feel a sense of accomplishment.
This builds momentum to stick to the plan.

🔄 Should I take a Personal Loan to pay off Credit Cards?

This is a common form of Debt Consolidation in India. It involves taking a low-interest Personal Loan (10.5% - 14% p.a.) to pay off high-interest Credit Card dues (36% - 42% p.a.).

The Good News (Math)

✅ Save huge interest: Replacing 40% interest with 12% is an instant win.
✅ One EMI: Managing one loan is easier than 5 credit card bills.

The Danger (Behavior)

⚠️ The "Clear Card" Trap: Most people clear their cards and then start spending on them again.
⚠️ Double Debt: You end up with the new Personal Loan + new Credit Card bills.

Verdict: Only do this if you have the discipline to stop using your credit cards completely.

Avalanche vs Snowball – Key Differences

Feature	Avalanche	Snowball
Payoff Order	Highest Interest First	Smallest Balance First
Interest Paid	Lowest (Best Savings)	Higher
Motivation	Low (Slow start)	High (Quick wins)

Frequently Asked Questions

Is debt avalanche always better?: Mathematically, yes. It saves the most interest and offers the fastest payoff time.
Why does the Snowball method feel easier?: It leverages psychology. Clearing small balances gives you immediate "wins" to stay motivated.
Should I take a Personal Loan to pay off Credit Cards?: This is a common debt consolidation strategy. Replacing a 36-42% interest credit card debt with a 11-14% personal loan can save significant interest. However, it only works if you stop using the credit cards to avoid accumulating double debt.