Avalanche vs Snowball (Debt Strategies)
Two debt payoff strategies: avalanche prioritizes the highest APR; snowball prioritizes the smallest balance.
Definition
Avalanche minimizes total interest paid (mathematically optimal). Snowball maximizes psychological wins (smaller debts cleared faster). Studies of completion rates show snowball users more often finish payoff; avalanche users save more money when they do. Wider APR spreads favor avalanche more dramatically.
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