The Debt Avalanche (The Mathematical Winner)
With the Avalanche method, you list all your debts by interest rate. You pay the minimum on everything and put every extra rupee toward the debt with the HIGHEST interest rate. This method minimizes the total interest paid and shortens your total time in debt. It is mathematically the most efficient route.
The Debt Snowball (The Psychological Winner)
The Snowball method ignores interest rates. Instead, you pay off the SMALLEST balance first. The "quick win" of closing an account provides a massive psychological boost, triggering a dopamine hit that keeps you motivated to tackle the next one. For most humans, psychology beats math in long-term discipline.
Which One Should You Choose?
If you are highly disciplined and focused on the numbers, go Avalanche. If you have felt overwhelmed and failed at budgeting before, the Snowball is likely your best path. The best strategy is the one you actually stick to.