Learn the basics

It’s the smallest amount your lender requires you to pay each month. Paying only the minimum is legal — but it keeps you in debt for years because most of it goes to interest, not your balance.

Interest is the fee you pay to borrow money. If your card charges 20% interest, a $1,000 balance grows by about $16 every month if you don’t pay it down. That’s why high-interest debt is so painful.

Because you have limited money each month. Putting all your extra cash on ONE debt at a time gets it paid off faster, frees up that monthly payment, and gives you momentum.

Money is emotional. When you pay off your first debt — even a small one — your brain says ‘I can do this!’ That feeling is what keeps people going. The math is slightly worse than avalanche, but the success rate is higher.

Snowball pays the SMALLEST balance first (best for motivation). Avalanche pays the HIGHEST interest rate first (saves slightly more money). Pick whichever you’ll actually stick with. The calculator lets you try both.

If you can’t make minimum payments, are being threatened with lawsuits or wage garnishment, or are considering bankruptcy — please talk to a non-profit credit counselor (look for an NFCC-certified agency). It’s usually free.