Americans hold a record $1.28 trillion in credit card debt. The two most popular payoff strategies: snowball (smallest balance first) and avalanche (highest interest first).
The $47K Breakdown
$8,200 credit card at 22%. $15,300 car loan at 6.5%. $23,500 student loans at 5.5%. DTI ratio: 38%.
Avalanche: The Math Winner
Targeting the 22% credit card first saved $2,800 in total interest over the payoff period.
Snowball: The Psychology Winner
Paying off the smallest debt first created momentum. Research shows people who use snowball are more likely to stick to the plan.
The Hybrid Approach
Start with snowball for 1-2 quick wins, then switch to avalanche for the big balances. Use the Student Loan Speedrun Calculator.
Read: Full Comparison Guide.
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