How the debt snowball works
List your debts from the smallest balance to the largest. Pay the minimum on every one, and put every extra dollar on the smallest. When it's gone, its payment rolls onto the next one, so the amount going at each debt grows as you go, like a snowball rolling downhill.
The early wins are the point. Clearing a whole debt in the first few months is what keeps most people going long enough to finish.
How the debt avalanche works
Same idea, different order: the extra goes to the debt with the highest interest rate first. It never costs more interest than the snowball, and with large high-rate balances it can save a lot. The trade-off is that your first payoff can take longer when the highest-rate debt is also a big one.
Which should you choose?
Switch between the two above. If the avalanche saves a few dollars, the snowball's quicker first win is usually worth more. If it saves hundreds or thousands, the avalanche earns its keep. Either one beats paying the minimums, and the plan you stick with beats the one you give up on.
Questions people ask
What should I put for the interest rate?
The APR on your statement. For a 0% promotional balance, put 0, and plan for the day the promotion ends.
Should I include my mortgage?
Most people leave it out. The snowball is for everything else first, and a 30-year mortgage in the list would push the date out by decades.
Why does it say "more than 50 years"?
At least one minimum payment doesn't cover the interest charged on it each month, so that balance never falls. Put some of your extra toward it, or ask the lender for a lower rate.
When does the count start?
Your first payment counts as this month, the same way PathForward's Debt page counts, so the two always show the same date.