January statements arrive and the holidays suddenly have interest rates. The good news: the order you pay matters almost as much as how much — and the right order can save months and real money.
The avalanche: cheapest first
Pay minimums everywhere, throw every extra dollar at the highest APR. Mathematically optimal — you pay the least interest. Best for disciplined spreadsheet types.
The snowball: smallest balance first
Attack the tiniest balance for a fast first win, then roll that payment into the next. Costs slightly more interest, but the early victories keep most people going — and finishing beats optimizing.
Consolidation: one payment, lower rate
A balance-transfer card or personal loan can cut rates dramatically — but only if the old cards stay paid off. Consolidating then re-spending is the classic trap; cut the habit before you cut the rate.
The score bonus nobody mentions
Every payoff path should route through statement dates: pay balances down before the statement closes and the bureaus see lower utilization immediately. Our repair clients use this timing trick from month one.