Liabilities

Avalanche vs Snowball

Highest rate first versus smallest balance first. Same budget, different interest paid.

Two repayment rules, one budget. The maths prefers avalanche. Behaviour sometimes prefers snowball. Model both before you pick a religion.

Maths

Every spare pound after minimums hits the highest APR. Interest paid is minimised. Time to clear is usually shortest.

Psychology

Spare pounds hit the smallest balance. You collect quick wins. Total interest is higher unless those wins keep you paying.

Takeaway

The Debt Engine compares both against a minimums-only baseline. If the interest gap is small, pick the rule you will actually follow.

Run the numbers