Should you pay off the smallest balance first for quick psychological momentum, or target the highest interest rate first to save maximum money? We simulate both.
Psychology vs Mathematics in Debt Elimination
The Debt Avalanche mathematically minimizes interest paid by channeling all extra cash towards the loan carrying the highest interest APR (e.g. 42% credit card debt).
The Debt Snowball focuses on human behavioral momentum: knocking out a ₹15,000 personal loan delivers an instant psychological win, proving you can become debt-free.