Multi-Card Payoff Calculator: Avalanche vs Snowball

The Avalanche Method: Pay Less Interest

The avalanche method targets the card with the highest interest rate first. You pay minimums on all other cards and throw every extra rupee at the most expensive debt. Once that card is cleared, the freed-up money rolls to the next highest rate card.

This approach is mathematically optimal — it always results in the least total interest paid. For Indian credit cards charging 3.5% per month (42% per annum), the rate differences between cards might seem small, but over 12-24 months of payoff the savings compound significantly.

The Snowball Method: Build Momentum

The snowball method targets the card with the smallest balance first, regardless of interest rate. The idea is psychological: clearing a card completely gives you a quick win and motivation to keep going. Research shows that people who use snowball are more likely to actually become debt-free because they stay motivated.

The trade-off is that you pay slightly more in total interest. But if the alternative is giving up halfway, snowball wins every time.

Which Strategy Should You Choose?

Choose avalanche if: the interest rate difference between your cards is large, you are disciplined with money, and saving the maximum amount matters most to you.

Choose snowball if: you have several small balances that can be cleared quickly, you need motivation to stick with the plan, or the interest difference between strategies is small (under ₹500).

Either way, the most important thing is to fix a total monthly budget and stick to it. Paying just the minimum due on all cards is the worst possible strategy — our Minimum Due Trap Calculator shows you exactly why.

Already know you want to clear a single card fast? Use our Credit Card Payoff Calculator for a detailed month-by-month breakdown.