Nov 2, 2024 · 6 min read
The Avalanche vs. Snowball Method: Which Student Loan Strategy is Right for You?
Choosing how to pay off student loans is a major financial decision. We break down two of the most popular methods—Avalanche and Snowball—to help you decide which one fits your personality and financial goals.
When it comes to tackling student loan debt, the two most talked-about strategies are the 'Avalanche' and 'Snowball' methods. Both have their merits, but they appeal to different psychological and financial priorities.
Understanding the Methods
- Debt Avalanche: You pay off the loan with the highest interest rate first, while making minimum payments on the rest. This method saves you the most money on interest over time.
- Debt Snowball: You pay off the loan with the smallest balance first, regardless of the interest rate. This method provides quick psychological wins, which can be highly motivating.
Which method will work best for your specific loans and income? Our AI can analyze your situation and recommend a hybrid strategy tailored to you.
Get your personalized payoff plan with the AI Student Loan Calculator!