Debt Snowball vs Avalanche: Which Strategy Is Right for You?

You've decided to get serious about paying off debt. Smart move. But now you're facing a choice that trips up a lot of people: Should you use the debt snowball or the debt avalanche method?

Both strategies work. Both have helped millions of people become debt-free. The difference isn't about math—it's about you.

The Debt Snowball Method

With the snowball method, you pay off your debts from smallest balance to largest, regardless of interest rate.

Here's how it works:

1. List all your debts from smallest to largest balance
2. Make minimum payments on everything except the smallest debt
3. Throw every extra dollar at that smallest debt
4. When it's paid off, roll that payment into the next smallest
5. Repeat until you're debt-free

Why it works: Quick wins. When you pay off that first small debt in a few weeks or months, something clicks. You feel capable. That momentum is powerful.

The Debt Avalanche Method

With the avalanche method, you pay off debts from highest interest rate to lowest, regardless of balance.

The process is similar:

1. List all your debts from highest to lowest interest rate
2. Make minimum payments on everything except the highest-rate debt
3. Attack that highest-rate debt with everything extra
4. When it's gone, move to the next highest rate
5. Continue until debt-free

Why it works: Pure math. By eliminating high-interest debt first, you pay less total interest over time. For large debts with high rates, the savings can be significant.

Which One Saves More Money?

The avalanche method will almost always save you more in interest. That's just math.

But here's the thing: the best debt payoff plan is the one you actually finish.

Research from Northwestern University found that people who paid off small debts first were more likely to eliminate their total debt. The psychological wins mattered more than the mathematical optimization.

How to Choose

Choose the Snowball if:

• You need motivation and quick wins
• You have several small debts you could eliminate quickly
• You've tried paying off debt before and lost steam
• The psychological boost matters more to you than saving a few hundred dollars

Choose the Avalanche if:

• You're motivated by math and logic
• Your highest-rate debt isn't overwhelmingly large
• You can stay disciplined without needing quick wins
• The interest rate differences between your debts are significant

The Truth No One Tells You

Here's a secret: you can switch methods.

Start with snowball to build confidence, then switch to avalanche once you've got momentum. Or use avalanche but throw in a small debt occasionally for a quick win.

The debt payoff police aren't going to show up at your door.

Your Next Step

Stop debating and start calculating. Enter your actual debts into our calculator and see exactly what each method looks like for your situation—your payoff date, total interest, and monthly payment schedule.

The best time to start was yesterday. The second best time is right now.