We have a total monthly debt payoff budg
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We have a total monthly debt payoff budget of $800. ent, utilities, groceries, and medicine are fully covered with a separate buffer, so this entire $800 goes directly toward debt.
Here are our three debts:
1. Store Card: $1,200 balance, 28.99% AP, minimum payment $45/mo
2. Credit Card: $5,500 balance, 21.49% AP, minimum payment $165/mo
3. Personal Loan: $3,800 balance, 11.50% AP, minimum payment $190/mo
Minimum payments total $400, leaving an extra $400 every month ($800 total budget).
My sister insists we do the Snowball method (smallest balance first) for psychological momentum. My husband says Avalanche is pure math and anything else is throwing money away.
1. Since the Store Card has both the highest AP (28.99%) and the smallest balance ($1,200), does Avalanche vs Snowball actually differ for us after that first card is gone?
2. Exactly how many months and how much total interest will each method cost us across the entire $10,500 debt?
3. What does each method buy us, and how should we decide between them without arguing?
Answer
I'll run the comparison first, then answer all three of your questions from the script's output.
ent, utilities, groceries, and medicine are covered by a separate buffer, so the $800 is a pure debt comparison — no crisis ladder, no immovable gap. The numbers below come from this turn's `payoff.py` (monthly compounding, model not prediction).
| Strategy | Payoff order | Months | Total interest |
| --- | --- | --- | --- |
| Avalanche | Store Card → Credit Card → Personal Loan | 15 | $1,218.10 USD |
| Snowball | Store Card → Personal Loan → Credit Card | 15 | $1,377.12 USD |
**1. Do the two methods actually diverge for you after the Store Card is gone?**
Yes. Both routes start the same: every spare dollar goes to the Store Card for the first 3 months and it closes with $56.58 of interest. After that the routes split because the Credit Card ($5,500, 21.49% AP) is *both* the middle AP *and* the largest balance. Avalanche hits it next; Snowball skips over it to the smaller Personal Loan ($3,800).
**2. Months and total interest for each method, across the full $10,500:**
- Avalanche: **15 months, $1,218.10** total interest. (Credit Card: $789.65, Personal Loan: $371.87, Store Card: $56.58.)
- Snowball: **15 months, $1,377.12** total interest. (Credit Card: $1,116.38, Personal Loan: $204.16, Store Card: $56.58.)
Same finish line, different price tag: **$159.02 more interest under Snowball.**
**3. What each method buys, and how to decide without arguing:**
| | Avalanche | Snowball |
| --- | --- | --- |
| Math result | $159.02 less interest over 15 months | Costs about $10.60/month on average |
| Visible "balance zeroed" wins | Store Card at month 3, **Credit Card at month 13**, Personal Loan at month 15 | Store Card at month 3, **Personal Loan at month 9**, Credit Card at month 15 |
| Hard middle stretch (months 4–12) | You are paying one large balance ($5,500) down with no second win until month 13 | You clear the second balance at month 9, then only one card is left |
The argument in your house is really about **what the middle 6 months feel like.** Under Avalanche, you go 10 months between "balance cleared" moments (month 3 → month 13). Under Snowball, the second win lands at month 9. If a visible second zero is what keeps the household actually making those $800 payments on a hard month, $159.02 is the price. If the spreadsheet is what keeps you both on track, Avalanche is cheaper by that exact amount.
I won't pick — your call. The numbers above are the whole difference between the two.
Source: this turn's `payoff.py` `ok:true` stdout, monthly compounding model (not a prediction — actual statements can include fees, AP changes, or minimum recalculation when balances fall below a threshold).