Why Minimum Payments Are Designed to Keep You in Debt
The minimum payment on most credit cards is 1–3% of the outstanding balance. At this rate, a $5,000 balance at 22% APR takes approximately 30 years to pay off and costs over $11,000 in total interest — more than double the original debt. Model your own payoff timeline with our Credit Card Payoff Calculator.
The Debt Avalanche: Mathematically Optimal
The avalanche method directs every extra dollar toward the highest-interest debt first, regardless of balance size. Once the highest-rate card is cleared, you redirect that card's entire former payment to the next-highest-rate balance. The avalanche always minimises total interest paid and total time in debt.
The Debt Snowball: Psychologically Powerful
The snowball method targets the smallest balance first, ignoring interest rates. It produces faster early wins, which research on behaviour change shows is meaningful for long-term adherence. The snowball costs more in total interest than the avalanche — sometimes substantially more — but it keeps people engaged.
Which Should You Choose?
If all your debts are within a similar interest rate band (say, 18–24%), the difference is small enough that the psychological momentum of the snowball is probably worth it. If you have one card at 28% and others at 16%, the avalanche wins convincingly on the numbers. Calculate both scenarios and choose the one you will actually stick with.