What is the Avalanche method for paying off credit cards?

The Avalanche method prioritizes paying off credit cards with the highest APR (interest rate) first while making minimum payments on others. This saves the most money on interest over time.

What is the Snowball method for debt payoff?

The Snowball method focuses on paying off the smallest balance first, regardless of interest rate. This provides quick wins and psychological motivation to keep paying off debt.

Which debt payoff method saves the most money?

The Avalanche method typically saves the most money on interest because it targets high-APR debt first. However, the Snowball method may work better for people who need motivation from quick wins.

Why do cash advances grow even when I make payments?

Credit card companies apply your minimum payment to the lowest APR balance first (usually purchases at 15-25% APR), while your cash advance balance continues accruing interest at higher rates (25-30% APR). The 2009 CARD Act only requires payments ABOVE the minimum to be applied to the highest APR balance. This is why paying only the minimum causes cash advance debt to grow over time.

Credit Card Payoff Calculator - Avalanche vs Snowball

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PAYOFF STRATEGY

Avalanche
(Highest APR First)

Snowball
(Smallest Bal First)

Which strategy saves more? Read a real example →

Fixed Payments

Keep paying the initial amount even as your balance goes down.

What-If: 10% Rate Cap (12 Months)

2026 proposal: 1-year cap on purchase APRs only. Cash advances NOT affected.

Payoff Timeline

Avalanche

Where Your Money Goes

See how much goes to interest vs. actually reducing your debt

Monthly Total

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Pro Tip: Add extra payment to see the red (interest) shrink and green (principal) grow!

Cash Advance Impact

Toxic Debt

Why cash advances grow: Banks apply your minimum payment to the lowest APR balance first (purchases). Your cash advance keeps accruing interest at 25-30% while your purchase balance slowly decreases. Only payments above the minimum go to the highest APR (CARD Act protection).

Scenario Breakdown

Scenario	Total Interest	Time	Result
Status Quo Min Pay Only	$0	0 mo	Slow
Senaro™ Avalanche + Cap	$0	0 mo	Optimized

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