Pay the minimum on every card, then put all your extra money on the card with the highest interest rate (APR). This is called the avalanche method and it costs the least in interest. If you need quick wins to stay motivated, the snowball method, which pays the smallest balance first, costs a little more but works well for many people.
In the three-card example below ($6,300 total, $450 a month), avalanche clears the debt in 17 months with about $1,112 in interest, snowball takes 17 months with about $1,322, and paying only the minimums takes about 10 years and roughly $8,846. Run your own cards in the credit card payoff calculator.
📑 Table of Contents
The two methods
- Avalanche: list your cards by APR, highest first. Pay the minimum on all cards and send every extra dollar to the highest-APR card. When it is gone, roll its whole payment onto the next one.
- Snowball: list your cards by balance, smallest first. Pay the minimum on all cards and send every extra dollar to the smallest balance. When it is gone, roll that payment onto the next smallest.
In both methods you keep paying the minimum on every card. Missing a minimum payment can trigger late fees and, with some issuers, a higher penalty APR, which undoes the benefit of any strategy.
A three-card example
Imagine three cards with a combined $6,300 in debt. You can afford $450 a month in total, and no new purchases are added.
| Card | Balance | APR | Minimum payment |
|---|---|---|---|
| Card A | $1,500 | 19.99% | $40 |
| Card B | $4,000 | 27.99% | $100 |
| Card C | $800 | 15.99% | $25 |
The minimums total $165, so $285 a month is extra. Interest is charged monthly at APR ÷ 12 on the remaining balance. The simplified minimums above stay fixed, while real minimums usually shrink with the balance.
- Avalanche order: Card B (27.99%), then Card A (19.99%), then Card C (15.99%).
- Snowball order: Card C ($800), then Card A ($1,500), then Card B ($4,000).
The result side by side
| Plan | Debt-free after | Total interest | First card gone |
|---|---|---|---|
| Avalanche | 17 months | $1,112 | Card B, month 13 |
| Snowball | 17 months | $1,322 | Card C, month 3 |
| Minimums only, no extra | about 118 months (9.8 years) | about $8,846 | Card C, month 42 |
Two things stand out. First, the order matters far less than paying more than the minimum: both methods save over $7,500 compared with minimums only. Second, avalanche saves about $210 in this example because it attacks the 27.99% card first, while snowball gives you your first win in month 3 instead of month 13.
Which one should you choose?
| If you... | Choose |
|---|---|
| Want the lowest total interest and are comfortable waiting for a win | Avalanche |
| Have one card with a much higher APR than the rest | Avalanche |
| Have tried and quit debt plans before, or need early progress | Snowball |
| Have several tiny balances you could clear quickly | Snowball |
| Have similar APRs on all cards | Snowball (little cost to the difference) |
The best method is the one you will actually keep doing. The $210 difference above is real, but dropping out of a plan costs far more.
Cases where the order changes
- A 0% promotional rate that is about to end: if a card will jump to a high APR on a known date, pay it down enough before then, even if it is not the highest rate now.
- A card near its credit limit: high utilization can lower your credit score. Many lenders prefer to see usage well below your limit, so paying down a nearly maxed card can help your score as well as save interest.
- Equal APRs: if two cards share a rate, pay the smaller balance first.
- An annual fee card you plan to keep: the fee does not change the order, but factor it into whether the card is worth keeping at all.
- A balance transfer: moving a high-APR balance to a lower or 0% offer can cut interest, but check the transfer fee (often 3% to 5%) and the date the promotion ends.
Step by step
- List every card with its balance, APR and minimum payment.
- Add up your minimums and decide how much you can pay in total each month.
- Pick avalanche or snowball and rank your cards.
- Set automatic minimum payments on every card so you never miss one.
- Send the extra amount to your target card each month.
- When a card is paid off, add its full payment to the next card in the order.
- Stop adding new charges to the cards you are paying off, or the plan will not shrink.
If you also have loans, the principles are similar. See how to pay off a loan faster, and plan your monthly amount with the budget planner.
Mistakes to avoid
- Skipping minimums on other cards to pour money onto one card.
- Closing paid-off cards right away. Closing a card can reduce your available credit and shorten your account history, which may affect your score. Keep it open if it has no fee.
- Using the card again while you are paying it off.
- Ignoring the APR on cash advances, which is often higher than the purchase rate and has no grace period.
- Not updating the plan when rates, balances or income change.
How to use the payoff calculator
Enter a card's balance and APR
Use the numbers from your latest statement.
Add your monthly and extra payment
See how much faster an extra payment clears the card.
Compare scenarios
Check the months to payoff and the total interest, then repeat for your other cards.
Frequently Asked Questions
Conclusion
Pay every minimum, then send all extra money to the highest-APR card for the lowest cost, or to the smallest balance if you need early wins. Either beats minimum payments by a wide margin. Plug in your own balances and rates in the credit card payoff calculator to see your payoff date.
This guide is for general information and is not financial advice. The example uses simplified fixed minimum payments and no new charges. Check your card agreements for exact terms, and consider a nonprofit credit counselor if you are struggling with debt.