Photo by Pink Sherbet Photography
The debt snowball method has you pay off small balances first so you feel good and motivated to take on the bigger stuff. The debt avalanche or stacking method has you pay off the debts with the highest interest rates first, saving yourself from spending more on interest in the long run. In Beverly Harzog's new book The Debt Escape Plan, Harzog suggests combining them for the best of both worlds.
The debt blizzard method has you pay off your smallest debt first for the motivational boost, but then has you start tackling the debts with the highest interest rates. When you need a win to keep you motivated, you pay off the lowest debt again. This is a great method for people who are a little too carefree with their money and see their debt as insurmountable. It keeps you motivated while going about it smartly.