Direct answer: to pay off debt fast, use one target at a time. Make minimum payments on every debt, then throw every spare dollar at a single target debt. When it is gone, roll its payment into the next one. The only question is which debt you target first — and that choice is what separates the snowball from the avalanche.

The snowball method targets the smallest balance first, whatever its interest rate. The avalanche method targets the highest interest rate first, whatever its balance. Every top guide explains this. Almost none of them run the same debts through both methods and show you the dollar difference. That is the gap this guide fills — with a full worked example.

The example debts. Card A: $2,400 at 24% APR, minimum $60 a month. Card B: $1,200 at 18% APR, minimum $30 a month. Personal loan: $600 at 12% APR, minimum $25 a month. Total debt: $2,400 + $1,200 + $600 = $4,200. Minimum payments total $60 + $30 + $25 = $115 a month. On top of that, you have an extra $200 a month to attack debt, so your total monthly debt payment is $115 + $200 = $315.

First, notice the cost of standing still. Monthly interest on each balance is balance x APR / 12. Card A: $2,400 x 0.24 / 12 = $48 a month. Card B: $1,200 x 0.18 / 12 = $18 a month. Loan: $600 x 0.12 / 12 = $6 a month. Together that is $48 + $18 + $6 = $72 a month in interest before a single dollar of principal is repaid. That is why minimum-only payments drag on for years.

Now the simulation, month by month, with interest charged monthly and freed minimum payments rolled into the attack amount. Snowball order (smallest first: loan, then Card B, then Card A): debt-free in 16 months, total interest paid $676.57, and the first debt — the $600 loan — is fully gone in month 3. Avalanche order (highest rate first: Card A, then Card B, then the loan): also debt-free in 16 months, total interest paid $564.93, but the first debt is not gone until month 11.

The difference is $676.57 - $564.93 = $111.64. The avalanche saves $111.64 on these debts and finishes in the same number of months — but it asks you to wait 11 months for your first win, while the snowball gives you one in month 3. That is the real trade-off, and it is personal, not mathematical: if quick wins keep you going, the snowball's $111.64 premium buys motivation. If you trust yourself to stay the course without one, the avalanche is cheaper.

A hybrid option exists: clear one small debt first for the win, then switch to highest-rate order for the rest. You get an early victory and most of the interest savings. There is no rule against mixing methods — the best method is the one you actually finish.

Two warnings the top guides understate. First, neither method fixes a budget that spends more than it earns — if new charges keep landing on the cards, no payoff order will save you. Stop adding debt first. Second, protect essentials before extra payments: rent, food, utilities, and minimum payments on every debt come before the attack amount, every month, without exception.

Bottom line: list every debt with its balance, rate, and minimum. If you need momentum, snowball. If you want the lowest cost and can wait, avalanche. Either way, $315 a month clears $4,200 of mixed debt in about 16 months in this example — the method matters less than starting this month.