To pay off multiple credit cards, list every card, set one monthly budget that covers all the minimums, and send what is left to one target card at a time. When that card is paid off, its minimum joins the money for the next target. Whether the target is the highest rate (the avalanche) or the smallest balance (the snowball) matters less than the size of the budget.
List every debt
Start with three numbers from each statement: the balance, the APR and the minimum payment. This site's worked example uses three cards:
- Card A: $1,500 at 22%, with a $45 minimum.
- Card B: $4,500 at 29%, with a $155 minimum.
- Card C: $9,000 at 25%, with a $280 minimum.
Together they come to $15,000. Copy each figure exactly as the statement shows it. The minimums decide how much of the budget is left for the target card, so a rounded guess changes the result.
One card can also hold several balances at different rates. On US cards, money paid above the minimum generally goes to the highest-rate balance first, so it helps to know which balances a card carries.
Set one monthly budget
Next, choose one amount to pay across all the cards each month. It has to be at least the sum of the minimums, which is $480 in the example. Whatever sits above that line is the money that does the extra work. It helps to pick an amount that can be kept up every month, since every figure below assumes the same budget each month.
The example budget is $650 a month. Paying every minimum takes $480 of it, and the remaining $170 goes to a single target card.
Choose an order: avalanche or snowball
Both methods pay every minimum, every month. They differ only in which card gets the extra $170:
- The avalanche targets the highest APR first: Card B at 29%.
- The snowball targets the smallest balance first: Card A at $1,500.
When the target card is paid off, its minimum joins the money aimed at the next target, so that amount grows each time. With $650 a month and nothing new charged, the math says:
- Avalanche (Card B, then C, then A): 32 months (about 2.7 years) and $5,771 of interest.
- Snowball (Card A, then B, then C): 33 months and $5,982 of interest, which is $211 more.
Here the gap comes from Card B: the snowball spends its first extra money on Card A at 22% while Card B keeps charging 29%. A small gap means the snowball's early wins may be worth more to you than the difference. This site's avalanche vs snowball calculator lets you compare the avalanche and the snowball with your own cards, so you can see how big the gap is for your numbers.
The budget matters more than the order
The order gets most of the attention, but the budget does most of the work. Here are the same three cards at three budgets, with nothing new charged:
- $480 a month (only the minimums, with each freed minimum rolled on): both orders take 53 months (about 4.4 years) and $10,221 of interest.
- $650 a month: 32 months and $5,771 with the avalanche, or 33 months and $5,982 with the snowball.
- $800 a month: both orders take 25 months (about 2.1 years), with $4,259 of interest for the avalanche and $4,411 for the snowball.
Going from $480 to $650 changes the interest far more than switching orders does at any of these budgets. And either order beats paying minimums with no plan. If the order feels like a close call, the budget is the more useful number to think about.
When the two orders tie
The order only decides where the extra money goes. At $480 a month the budget covers the minimums and nothing more, so there is no extra money to aim anywhere until a card is paid off and its minimum is freed. The two orders have almost nothing to disagree about, and the math gives both the same result: 53 months and $10,221 of interest.
They also tie when the smallest balance carries the highest rate. Give Card A 29%, Card B 25% and Card C 22%, and both methods pick Card A first and Card B next. In that version of the example, both orders cost exactly $4,978 of interest.
Would one loan or a balance transfer help?
Two other tools come up when there are several cards. This site's own examples show what each one trades:
- A consolidation loan. Paying $10,000 of 24% card debt at $300 a month takes 56 months and $6,644 of interest. A 12% loan over 36 months with a 5% fee costs $349 a month and $2,555 in interest and fee together, which saves $4,089. Stretched to 60 months, the same loan costs $234 a month, but interest and fee rise to $4,014. The debt consolidation calculator runs that comparison.
- A balance transfer. Moving a $6,000 balance to 0% for 18 months with a 3% fee ($180) saves $1,377 at $325 a month, compared with not transferring. Clearing it inside the promo takes $344 a month, and a late payment can end the promo. The balance transfer calculator counts the fee and the promo.
Track it month by month
A plan across several cards runs for months, so it helps to keep it in one place. The free Debt Payoff Tracker spreadsheet lists every debt, compares the avalanche and the snowball, and tracks each month's payments. It is sent by email when you sign up. Each month, update the balances from the new statements so the sheet shows what is really left.
Compare your own cards
Enter each card's balance, APR and minimum, plus your monthly budget, in the snowball and avalanche calculator to see what each order costs with your own numbers. For a single card, see what paying only the minimum costs over time. These pages teach the math; they are not financial advice, and their examples are illustrative approximations (the disclaimer has the details).