Rate-first approach
Often called the avalanche method, this directs extra money toward higher-interest debt while required payments continue elsewhere.
Balance-first approach
Often called the snowball method, this targets smaller balances first to create earlier account payoffs.
Mathematics vs behavior
Rate-first can reduce interest mathematically under consistent assumptions, while some people prefer the momentum of balance-first.
Do not skip required payments
Any payoff method should account for required minimums, secured obligations and consequences of missed payments.
Educational information only. Use current product terms and the rules that apply in your country. For decisions with significant financial consequences, consider an appropriately qualified professional.