We live in Illinois, USA. Our essential
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We live in Illinois, USA.
Our essential living expenses (rent, utilities, groceries, and medicine) are completely covered and paid on time each month with an emergency cushion.
We currently have three debts:
1. Credit Card A: $2,800 balance at 26.99% AP, minimum monthly payment $85.
2. Credit Card B: $1,400 balance at 19.99% AP, minimum monthly payment $45.
3. Personal Loan: $5,000 balance at 11.5% AP, minimum monthly payment $120.
Total minimums are $250. We have an extra $350 monthly cash surplus, making our total monthly debt payoff budget $600.
Could you run an exact comparison between the Avalanche strategy and the Snowball strategy?
Please provide:
- The payoff timeline (months to debt-free) and total interest paid for both strategies in a clear side-by-side table.
- Which debt each strategy targets first.
- Note the compounding model assumption and keep the explanation objective without picking a method for us.
Answer
Got it — essentials are covered, so this is a repayment comparison. unning both strategies side-by-side now.
Both routes finish in the same number of months — Avalanche saves on interest.
| Strategy | Debt attacked first | Second | Third | Months to debt-free | Total interest paid |
| --- | --- | --- | --- | --- | --- |
| Avalanche (highest AP first) | Credit Card A — 26.99% | Credit Card B — 19.99% | Personal Loan — 11.5% | 18 | $1,061.78 USD |
| Snowball (smallest balance first) | Credit Card B — $1,400 | Credit Card A — $2,800 | Personal Loan — $5,000 | 18 | $1,119.26 USD |
**What each route buys**
- **Avalanche** sends the extra $350 (and any freed-up minimums) to Credit Card A first because it carries the highest AP. It pays less interest overall — about **$57.48 less** than Snowball over 18 months.
- **Snowball** sends the extra $350 to Credit Card B first because its $1,400 balance is the smallest. It clears a balance sooner (Card B in 4 months vs. 8 months under Avalanche), at the cost of about $57.48 more in interest.
**Model assumption (not a prediction)**
Source: this turn's `payoff.py` ok:true stdout; monthly compounding assumed — finance charge each month = remaining balance × that account's AP ÷ 12, applied before the payment. The 18-month timeline and the interest totals above are outputs of that model, not a forecast of how the accounts will actually behave (real statements apply fees, variable APs, and daily compounding rules differently).
**Limits to be honest about**
- I am not picking one for you. Avalanche costs less in interest; Snowball gives an earlier "first balance cleared" milestone. Some households value the small psychological lift of Snowball; others value the dollar savings of Avalanche.
- A $600/month plan is the minimum-payment budget ($250) plus your $350 surplus. If either account's AP changes, or a payment is missed, the months and interest figures move.
- This run does not include any 0% promotional periods, annual fees, or late-payment penalties — none of those were stated, so the model treats each AP as fixed for the full window.
Source: `python3 (internal file path omitted) ok:true, 2026-09-17.