The average US credit card APR is 22.8% — and retail store cards average 28–30%. Enter your balances and monthly budget to see exactly how much interest each strategy costs and when you'll be debt-free.
Take three common US debts: $6,000 Visa at 22.8% APR ($120 min), $2,500 store card at 28% APR ($50 min), and a $9,000 personal loan at 12% APR ($200 min). With a $500/month total budget and the avalanche method, you clear the 28% store card first — saving roughly $450 in interest versus the snowball approach.
Both strategies start the same: pay the minimum on every debt each month. The difference is where any remaining budget goes.
Avalanche piles the surplus onto the highest-rate debt. In the US, that's often a retail store card (28–30%) or a high-rate Visa/Mastercard. Clearing these first minimises total interest.
Snowball piles the surplus onto the smallest balance. Dave Ramsey's method — it builds momentum through quick wins, but can cost more if the small debt has a low rate and a high-rate debt goes untouched.
The CARD Act requires issuers to print the "minimum-payment warning" on every statement — showing how long it takes to pay off paying only minimums. This calculator gives you the full picture.
For the full math and behavioral research, see our guide to the debt avalanche method.
Both methods pay minimums on all debts, then direct extra budget at one target. Snowball targets the smallest balance first for quick wins; avalanche targets the highest APR first to minimize total interest.
Avalanche is always mathematically optimal — it minimizes the rate at which interest accrues across your portfolio. The difference can be hundreds to thousands of dollars depending on your debt mix.
Dave Ramsey popularized the snowball in the US. Research confirms quick wins help many people stay motivated. If the interest difference is small, choose whichever method you'll actually stick with.
US minimum payments are typically 1–3% of the balance or $25, whichever is greater. The CARD Act requires your statement to show how long paying only minimums will take — usually decades. Even an extra $50/month makes a dramatic difference.
The US average credit card APR is around 22.8% (Federal Reserve, 2025). Retail store cards average 28–30%. Balance transfer promotional periods expire at 20–29%. Always check your card's exact APR on your monthly statement.
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