We live in Texas, US. ent, utilities, fo
For reference only. Not investment advice.
Question
We live in Texas, US.
ent, utilities, food, and essential medications are already 100% covered by our regular paychecks.
We have $450.00 total monthly budget allocated strictly to eliminate our two credit cards:
- Card 1 (etail store card): $1,800.00 balance, 28.99% AP, minimum payment $65.00/month.
- Card 2 (Bank Visa): $4,200.00 balance, 19.99% AP, minimum payment $110.00/month.
Could you provide:
- A side-by-side comparison of the Avalanche strategy vs the Snowball strategy (months to payoff, total interest paid under monthly compounding model).
- What trade-off each strategy buys, without picking one for us.
Answer
ent, utilities, food, and essential medications are covered, so this is a clean comparison.
| Strategy | Order | Months | Total interest |
|---|---|---|---|
| Avalanche (highest AP first) | Card 1 → Card 2 | 16 | 900.06 USD |
| Snowball (smallest balance first) | Card 1 → Card 2 | 16 | 900.06 USD |
Source: this turn's `payoff.py` `ok:true` stdout; monthly compounding assumed. Figures are a model, not a prediction.
Both strategies agree here. Card 1 (etail, 28.99% AP, $1,800) is *both* the higher-rate *and* the smaller-balance card, so avalanche and snowball land on the same order. The numbers are identical either way.
What each strategy buys:
- Avalanche is usually chosen to minimize total interest paid. Here it ties because the same card leads.
- Snowball is usually chosen for the psychological win of clearing a balance first. Card 1 still clears in 6 months under $450/month — the first balance disappears in under half a year, which is the snowball payoff moment.
Card 2 (Bank Visa) is the long one: it finishes the 16-month stretch regardless of which label you give the plan, because it's the larger balance at the lower rate.
The choice here is a feeling, not a dollar amount: pick "minimize interest on paper" or "celebrate clearing Card 1 in 6 months" — both end the same way.