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Which debt should you pay first?

List your debts and what you can pay each month. See your debt-free date and the interest you pay with the avalanche and snowball methods, side by side.

→The average American carries about $105,000 in total debt, including mortgages, auto loans and credit cards (Experian, September 2025).
→Avalanche sends extra money to the highest interest rate first; snowball sends it to the smallest balance first. Both keep paying every minimum.
→On a $20,000 balance at 18% APR, paying $600 instead of $500 per month saves about $2,800 in interest and finishes about 15 months sooner.
$105k
Avg total debt per American
2
Payoff methods compared side by side
21%
Avg credit card APR in the U.S. (Federal Reserve, Q2 2026)
24mo
To pay off $20k at 18% APR paying $1,000/month

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Avalanche vs. Snowball method

The avalanche method pays off highest-interest debt first — it saves the most money mathematically. The snowball method pays off smallest balances first — it builds momentum psychologically.

Both pay every minimum each month; the only difference is where the extra money goes. The calculator runs both on your numbers so you can see what snowball\'s earlier wins cost compared with avalanche.

When to consider consolidation

Debt consolidation makes sense when: you have multiple high-interest debts (especially credit cards above 20% APR), you can qualify for a consolidation loan at a lower rate, and your DTI is below 43%.

It does not solve overspending — it restructures existing debt. If you consolidate and continue using the cards, you end up with more debt, not less. Fix the behavior first, then consolidate.

Common questions

How long will it take to pay off $20,000 in credit card debt?
On a $20,000 balance at 18% APR, paying only a minimum of about 2% of the balance would take over 50 years and cost roughly $77,000 in total (illustrative; actual minimums vary by issuer and assume no new charges). Paying $600/month clears the debt in about 47 months at a total cost of about $27,900. Paying $1,000/month clears it in about 24 months, for about $24,000 in total. Use the calculator above to find your optimal payment.
Is avalanche or snowball better?
Avalanche never costs more interest than snowball, because every extra dollar goes to the highest rate. Snowball clears your first debt sooner, which helps some people stay motivated. With three debts of $4,000 at 24%, $1,500 at 19% and $9,000 at 7%, and $600 a month, both finish in month 28; avalanche pays about $88 less interest, while snowball clears the first debt in month 7 instead of month 16.
Should I pay off debt or save first?
Build a $1,000 emergency fund first — always. Then aggressively pay down any debt above 7% APR before investing. Debt at 18% APR is a guaranteed 18% return when paid off — no investment consistently beats that. Once high-interest debt is clear, shift to building a 3–6 month emergency fund and then investing.

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