Getting Out of Debt: Avalanche, Snowball, and the Minimum-Payment Trap
Why minimum payments keep you in debt for decades, which payoff order saves the most, and when consolidation helps.
The minimum-payment trap
Card minimums are often 1–2% of the balance plus interest — engineered to keep you paying for 15+ years. Put a $5,000 balance at 22% APR into the credit card payoff calculator and read the interest column at minimum payments: the most convincing number in personal finance.
Avalanche vs snowball
Avalanche pays the highest rate first (cheapest); snowball pays the smallest balance first (most motivating). Pick the one you will finish, and let the debt payoff calculator price both strategies.
When consolidation helps
Consolidation helps only if the new rate or term is genuinely better — not when it just lowers the payment by stretching the term. Compare total interest with the debt consolidation calculator, and stop using the cleared cards.
The leverage of extra payments
Extra principal on a 22% card returns 22% guaranteed. Even $50 a month moves the payoff date years earlier — the loan calculator shows the effect of any extra payment on the schedule.