Our family has three credit cards and we
Ask
Our family has three credit cards and we have $350 extra monthly cash flow to put toward debt repayment.
Our non-debt living expenses (rent, utilities, groceries, and prescription medicine) are already fully covered and have zero gap.
Here are our three debts:
1. Card A: $5,000.00 balance, 27.99% AP, minimum payment $130.00
2. Card B: $1,200.00 balance, 19.99% AP, minimum payment $40.00
3. Card C: $3,500.00 balance, 15.99% AP, minimum payment $80.00
Combined minimums are $250.00. With our $350.00 extra, our total monthly payoff budget is exactly $600.00.
We live in Columbus, Ohio.
Can you provide:
1. An exact mathematical comparison of the Avalanche method (highest AP first) versus the Snowball method (lowest balance first).
2. For each strategy: the exact payoff order, total months to become debt-free, and total interest paid.
3. How much money Avalanche actually saves us versus Snowball, and what emotional trade-off Snowball provides (when is Card B knocked out)?
Answer
Immovables (rent, utilities, groceries, prescription medicine) are covered with zero gap, so this is a pure repayment comparison — both routes use your full $600/month ($250 minimums + $350 extra) and rank by the statement APs only, not by hand-computed monthly interest.
**Avalanche vs Snowball — your three debts at $600/month**
| Strategy | Payoff order | Months debt-free | Total interest paid |
| --- | --- | --- | --- |
| **Avalanche** (highest AP first) | Card A → Card B → Card C | 20 | $1,766.65 |
| **Snowball** (lowest balance first) | Card B → Card C → Card A | 20 | $2,215.85 |
Source: this turn's `payoff.py` `compare` stdout; monthly compounding assumed — model, not a prediction.
**What Avalanche buys:** $449.20 less interest, and Card A (the 27.99% one) is gone in month 13.
**What Snowball buys:** Card B ($1,200) is fully paid off in **month 4** — that's the first quick win, a balance off the books while Card C and Card A are still being chipped at. The next balance clears at month 11 (Card C). Card A drags to month 20.
**The trade-off, in plain terms:** both strategies finish in the same 20 months because the total balance is the same, so "faster" isn't on the table. Avalanche keeps more dollars in your pocket; Snowball gives you a cleared card to look at9 months earlier. Neither is wrong — pick "save interest" or "clear a balance first", and I'll set that route as your standing plan.
Note: I do not choose the method for you, and finance charge is a balance × that card's own rate, not a figure I will hand-derive here.