Debt avalanche vs. debt snowball: Which payoff method works best?

Paying off debt can feel overwhelming, especially when you're juggling multiple balances, interest rates and minimum payments — and trying to figure out how much you can afford to pay each month.

The debt avalanche and debt snowball are two popular repayment strategies that can simplify the process. With the debt avalanche, you prioritize debt with the highest interest rate to reduce your interest costs. With the debt snowball, you target your smallest balance first and work your way up.

Here's a closer look at both strategies and how the right budgeting app can help you find room in your budget to pay down debt.

Before you start the debt avalanche or snowball, figure out how much money you can realistically put toward debt each month. Start with your take-home pay and essential expenses, then look for spending you could reduce or redirect toward debt.

A budgeting app can make this easier by bringing your accounts and spending into one place, categorizing expenses and helping you see how much room you have for additional debt payments. Some apps can also help you set spending limits or savings goals, which may make it easier to stick with your payoff plan without…

Original source: https://www.usatoday.com/money/