By PayOffMyBills · Updated October 2, 2026.
Put snowball or avalanche into practice
Choose snowball to prioritize the smallest account or avalanche to prioritize the highest APR. Keep the same total monthly budget when comparing them. The full strategy comparison provides an account-by-account worked example and the interest tradeoff.
Your first statement cycle
- Use the debt inventory worksheet to record each separate account’s balance, APR, minimum and due date from the latest statement.
- Protect essentials, required payments and a practical cash reserve. Read emergency savings versus extra debt payments.
- Enter the accounts and one sustainable extra payment in the comparison calculator. Do not count money reserved for savings twice.
- Pay required minimums on all accounts. Direct extra money to your chosen target; confirm your creditor’s payment allocation.
- Check the next statements against the plan. Update changing rates, minimums and balances before the next payment.
After an account is paid off
Keep the total debt-payment budget steady by moving its freed payment to the next target. For example, a $25 minimum plus a $150 extra payment becomes $175 available for the next target once that account is cleared, in addition to the next target’s existing minimum.
When to pause the ranking rule
Urgent housing, utility or secured-debt obligations, court notices and promotional deadlines may matter more than balance or APR. If minimums are unaffordable, a different order cannot solve the budget gap. Contact creditors about available arrangements and verify terms.
Source: CFPB debt collection information. For the strategy source, calculation assumptions and reproducible example, use our snowball versus avalanche comparison.