Before we dive in, it’s important to note that these debt payoff methods only work if you have extra money each month to pay towards debt. It also only works if you have more than one type of debt to pay off. If you have only one type of debt, your extra monthly payment would go to your one account. And if you don’t have money left over each month, you would just pay your monthly minimums.
Why pay extra towards debt each month? It’s simple – you pay less in interest and get out of debt faster.
Below we will compare the debt avalanche vs debt snowball method and give you ideas to help you decide which one is best for you.