Which credit card to pay off first
The short answer
To pay the least interest on several credit cards, pay every minimum, then put the extra on the card with the highest annual percentage rate (APR). This order is the debt avalanche. In our example, three made-up cards with $8,300, the largest at 29.99% APR, get $100 a month extra. They are paid off in 30 months with the highest APR first and in 32 months with the smallest balance first. The avalanche saves $487 of interest.
With the same balances, both orders give the same result when the smaller the balance, the higher the APR, because both then pay the cards in the same order. With APRs from 21.99% to 23.49% and the highest on the largest card, the avalanche saves $136 and 1 month.
The smallest balance first, the debt snowball, can pay off a card sooner. Here it pays off its first card in month 7, and the avalanche in month 24.
Find the card that costs the most per dollar
The card with the highest APR costs the most for each dollar you owe, whatever its balance. Each $100 you pay off a card saves about $100 × APR ÷ 12 of interest every month. At 29.99% APR that is $100 × 0.2999 ÷ 12, about $2.50 a month. It is $1.85 on the 22.15% card and $1.50 on the 17.99% card.
| Card | Balance | APR | First minimum | Interest this month | Each $100 paid off saves |
|---|---|---|---|---|---|
| Large card | $4,500 | 29.99% | $157.46 | $112.46 | $2.50 a month |
| Medium card | $3,000 | 22.15% | $85.38 | $55.38 | $1.85 a month |
| Small card | $800 | 17.99% | $40.00 | $11.99 | $1.50 a month |
Our three cards are made up. The 22.15% APR is the Federal Reserve’s revised rate for the second quarter of 2026, the average on credit card accounts at commercial banks that were charged interest, from the G.19 release. The other rates are examples. Chase says that in most cases its minimum payment is $40 or 1% of the statement balance plus interest, whichever is greater. Each minimum here follows that rule, without late fees. Every number comes from our free debt payoff calculator, which counts interest as the balance times the APR divided by 12, rounded to the cent. The Consumer Financial Protection Bureau says many card companies count interest daily on the average daily balance. So a real statement can differ a little from these numbers.
When the order matters
The order matters when paying the highest APR first and paying the smallest balance first point to different cards at any step. The table keeps the same three balances and the same $100 a month extra. It changes the rates, and with them each card’s minimum, so compare the two orders within a row.
| APRs | Highest APR first (avalanche) | Smallest balance first (snowball) | The avalanche saves |
|---|---|---|---|
| The larger the balance, the higher the APR: 29.99%, 22.15%, 17.99% on the large, medium and small card | 30 months, $2,935.87 interest | 32 months, $3,422.70 interest | 2 months, $486.83 interest |
| The smaller the balance, the higher the APR: 17.99%, 22.15%, 29.99% on the large, medium and small card | 33 months, $2,466.73 interest | 33 months, $2,466.73 interest | Nothing, the order is the same |
| Like the first, with the APRs close together: 23.49%, 22.99%, 21.99% on the large, medium and small card | 32 months, $2,795.89 interest | 33 months, $2,931.82 interest | 1 month, $135.93 interest |
Each card pays its first minimum every month, plus $100 a month extra. When a card is paid off, its payment moves to the next card. The table assumes no new purchases, no fees and the same APRs.
Where the large card has the 29.99% APR, the avalanche pays it off in month 24. The snowball starts with the small 17.99% card, and the large card keeps charging the most interest until month 32.
Open this example to see these three cards in the free debt payoff calculator, with the highest APR first and $100 a month extra. It shows both orders side by side.
What the smallest balance first does better
The debt snowball pays off a small card sooner when that card does not have the highest APR. In our example with the 29.99% APR on the large card and $100 a month extra, the snowball pays off the small card in month 7. The avalanche pays off its first card in month 24. If seeing a card paid off helps you keep going, the snowball gives you that 17 months sooner. Here it costs $486.83 more interest and 2 months more.
The snowball and avalanche comparison covers both methods for any kind of debt. How to pay off credit card debt faster shows which changes save more time than the order does.
If you have no extra money
With no extra money, the order matters only after the first card is paid off. In our example with the 29.99% APR on the large card, the cards get their minimums, $282.84 a month, and the small card is paid off in month 24 either way. Then the order decides where its $40.00 goes.
With the highest APR first, the three cards are paid off in 48 months, and with the smallest balance first in 49. The avalanche saves $89.13 of interest, against $486.83 with $100 a month extra.
One card with several APRs
On one card with balances at different APRs, the card company decides where the minimum payment goes. Under Regulation Z (§ 1026.53), a federal rule, it must apply the amount you pay above the minimum to the balance with the highest APR first, then to the next highest.
A deferred interest balance is the exception. With a deferred interest offer, the Consumer Financial Protection Bureau says, you pay no interest on a purchase if you pay it off within the offer’s time frame. Otherwise you can owe all the interest that was deferred. In the two billing cycles before the offer ends, Regulation Z sends the amount above the minimum to that balance first.
Track the cards on iPhone
Debt Payoff Planner: Tracker is an iPhone app for paying off debt with the snowball or avalanche method. You type in each card, and it asks how much extra you could pay each month. When one debt is paid, its payment moves to the next. It is free for up to 3 debts, so these three cards fit in the free version, with no account and no bank link. Premium adds unlimited debts. See it on the App Store.
Questions
All questions
Should you pay off the credit card with the highest balance or the highest interest first?
The highest APR. A large balance costs more in total, but each dollar of it costs the same as on any card with the same APR. In our example of three cards with $8,300 and $100 a month extra, paying the 29.99% card first saved $486.83 and 2 months over paying the smallest balance first.
What is the formula for which credit card to pay off first?
Compare the APRs. Each $100 of balance costs about the APR divided by 12 every month, which is $2.50 at 29.99% and $1.50 at 17.99%. The card with the highest APR goes first.
Does the order matter if you can only pay the minimums?
Only a little. Both orders pay the same minimums until the first card is paid off. In our example, the difference after that is $89.13 of interest and 1 month.
When do the snowball and the avalanche give the same result?
When the smaller the balance, the higher the APR, both pay the cards in the same order. In our example with the same three balances and $100 a month extra, both take 33 months and cost $2,466.73 in interest.
When to talk to someone
- If your payments take more than you can cover each month, a nonprofit credit counselor can go through your budget and your debts with you. The Consumer Financial Protection Bureau says credit counseling can be free or low cost, and that counselors may charge for some services. It points to the National Foundation for Credit Counseling (nfcc.org, 877-360-6322) and the Financial Counseling Association of America (fcaa.org). Get any fee in writing before you sign up.
- If a debt collector or your card issuer treats you unfairly, you can submit a complaint to the CFPB at consumerfinance.gov/complaint or (855) 411-2372, Monday to Friday, 9 a.m. to 6 p.m. ET.
- If a company wants a fee before it settles any of your debts, the FTC calls that a warning sign. You can report it at ReportFraud.ftc.gov.
- If you are sued over a debt and your income is low, a legal aid office may help for free. Find the one near you at lsc.gov.
- If money worries leave you in crisis, call or text 988 to reach the 988 Suicide & Crisis Lifeline. It is free, confidential and open 24/7. In an emergency, call 911.
Outside the US, look for a free debt advice service run or approved by your government.
Sources
- Federal Reserve, G.19 Consumer Credit, release of October 7, 2026
- Chase, How to calculate your minimum credit card payment
- Consumer Financial Protection Bureau, How does my credit card company calculate the amount of interest I owe?
- Consumer Financial Protection Bureau, Regulation Z, § 1026.53 Allocation of payments
- Consumer Financial Protection Bureau, I got a credit card promising no interest for a purchase if I pay in full within 12 months. How does this work?
Sources checked on October 20, 2026.
Read next
All posts- Debt snowball vs. debt avalanche Two ways to choose where your extra payment goes. Compare the order, time and estimated interest.
- Credit card payoff calculator Find how long a fixed monthly payment could take, or estimate the payment needed by a target date.
- How to pay off credit card debt faster Five ways, ranked by the months they save. $100 more a month pays off $7,000 on 3 cards in 29 months, not 50.
