This MayeleCalc guide explains the concept in plain language so you can use the related calculator with better context and confidence. Work through each section, review the practical example, and check the common mistakes before applying the result.
The avalanche targets the highest rate
The debt avalanche sends extra money to the highest-APR balance while minimum payments continue on every other debt. It generally minimizes interest when payments remain consistent.
The snowball targets the smallest balance
The debt snowball prioritizes the smallest balance. Early wins may strengthen motivation, even if a higher-rate account continues charging interest for longer.
Cash flow and behavior matter
A mathematically optimal strategy only works when it is sustainable. Choose an extra payment that leaves room for essentials and a basic emergency reserve.
Measure the payoff timeline
Track the estimated payoff month, total interest, and each balance. Recalculate after rate changes, new borrowing, or unexpected payments.
Practical example
See the idea in action
Compare at least three scenarios using the same starting amount. Change only one input at a time—such as the rate, term, or monthly contribution—so you can see exactly what drives the result.
Common mistakes to avoid
- ×Comparing monthly payment without comparing total cost
- ×Using an annual rate as though it were a monthly rate
- ×Assuming an investment return is guaranteed
Key takeaways
- ✓Small rate changes can become meaningful over long periods
- ✓A lower payment does not always mean a lower total cost
- ✓Transparent assumptions make comparisons more useful
Put the idea into practice
Open the calculator library, choose the relevant tool, and compare realistic scenarios using the method from this guide.
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