We have two remaining debts after tighte
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We have two remaining debts after tightening our spending:
1. Credit Card: $2,400 balance at 24.99% AP (minimum monthly payment $75)
2. emaining Car Loan: $3,800 balance at 7.9% AP (minimum monthly payment $120)
We have a total debt repayment budget of $400 per month ($195 covers both minimums, leaving $205 extra each month).
Our housing, utilities, groceries, and essential health/medicine expenses are fully covered and safe.
Could you run a repayment comparison between Avalanche and Snowball showing the timeline in months and total interest for each, and explain what each route buys without choosing one for us?
Answer
Housing, utilities, groceries, and essential health/medicine are covered, so this is a repayment comparison, not a crisis path.
Both routes agree on the order — the Credit Card is both the higher AP (24.99%) and the smaller balance ($2,400), so Avalanche and Snowball target it first in this case.
| Strategy | Extra goes first | Months | Total interest |
| --- | --- | --- | --- |
| Avalanche | Credit Card 24.99% | 17 | 564.03 USD |
| Snowball | Credit Card $2,400 | 17 | 564.03 USD |
Source: this turn's `payoff.py` ok:true stdout; monthly compounding assumed. The 17 months and $564.03 are a model, not a prediction.
What each route buys:
- **Avalanche** (save interest): targets the 24.99% Credit Card first because its rate is higher, so every extra dollar there cuts the most finance charge.
- **Snowball** (clear one balance first): also lands on the Credit Card first here because $2,400 is the smaller balance — so the first "balance cleared" win is the same debt.
Both routes finish the Credit Card around month 10 (last payment $151.83) and the Car Loan around month 17 (last payment $364.03). Pick "save interest" or "clear one balance first" — both are the same here, so the choice is about which motivation you'd rather see on the page.