We live in Ohio, USA. Our household rent
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We live in Ohio, USA.
Our household rent, utilities, baby food, and essential medications are fully covered with no gap. We have $450 extra budgeted each month specifically to pay down our two credit cards:
- Card A: $4,500 balance at 22.99% AP (minimum payment $135/month)
- Card B: $1,200 balance at 16.50% AP (minimum payment $35/month)
Total monthly budget for debt payoff: $620 (135 + 35 + 450).
I know Avalanche targets higher AP to save interest, while Snowball targets the smallest balance for psychological wins.
1. Could you provide a side-by-side comparison table of Avalanche versus Snowball (months to debt-free, total interest paid under monthly compounding), without picking or declaring one method superior?
2. What are the distinct trade-offs between saving total interest vs clearing one account quickly?
Answer
ent, utilities, baby food, and essential medications are covered with no gap, so this is a repayment comparison on the $620 monthly debt budget.
| Strategy | Order | Months to debt-free | Total interest (monthly compounding) |
| --- | --- | --- | --- |
| Avalanche | Card A (22.99%) → Card B (16.50%) | 11 | 565.29 USD |
| Snowball | Card B (16.50%) → Card A (22.99%) | 11 | 616.69 USD |
Source: this turn's `payoff.py ok:true` stdout; monthly compounding, model not a prediction.
Both routes finish in 11 months, so the time-to-zero is the same under your $620 budget. The difference is shape, not clock.
**What Avalanche buys** — total interest $51.40 lower (565.29 vs 616.69 USD). Every extra dollar sits on the higher AP until Card A is gone, which is the cheapest mathematical path.
**What Snowball buys** — Card B clears in 3 months (last payment 260.09 USD) instead of waiting until month 9 or 11. That is a closed account and one fewer minimum to track earlier, while Card A continues to accrue at 22.99%.
**Trade-off, in your words**
- Save interest → Avalanche. The 51.40 USD stays in your pocket; you keep paying two minimums the whole way.
- Clear one account quickly → Snowball. Card B is gone by month 3; you carry Card A alone from month 4 onward, but you pay about 9% more interest overall.
Neither method is superior on every measure — Avalanche wins on dollars, Snowball wins on the visible "one card done" milestone. Pick by which trade-off you actually want to live with for the next 11 months.