Avalanche vs Snowball Method
The avalanche method prioritizes the highest interest rate debt first, saving the most money mathematically. The snowball method targets the smallest balance first, giving quicker wins for motivation. Both work — the best method is the one you'll stick with.
How Extra Payments Accelerate Payoff
Extra payments go to the targeted debt (highest rate or lowest balance). Once that debt is paid off, its minimum payment plus the extra rolls into the next debt — creating a "snowball" of increasing payments that accelerates payoff dramatically.