Debt Snowball vs Debt Avalanche: Which Should You Use?
If you are trying to pay off multiple debts, you will usually hear about two popular strategies: the debt snowball and the debt avalanche.
Both methods work. Both can get you out of debt. The best choice depends less on math and more on how you personally stay consistent over time.
This guide explains both approaches in plain English so you can decide which one fits you best.
What Is the Debt Snowball Method?
The debt snowball method focuses on paying off your smallest balance first, regardless of interest rate.
How it works
- List all your debts from smallest balance to largest.
- Pay the minimum payment on every debt.
- Put any extra money toward the smallest balance.
- Once that debt is paid off, roll its payment into the next smallest debt.
- Repeat until everything is paid off.
As each debt disappears, your available payment grows like a snowball rolling downhill.
Why people choose the snowball method
- You see progress quickly
- Debts disappear early
- Motivation builds fast
- It feels simpler and more rewarding
Downsides of the snowball method
- You may pay more interest overall
- It is not the most cost efficient approach
What Is the Debt Avalanche Method?
The debt avalanche method focuses on paying off the highest interest rate first, regardless of balance size.
How it works
- List all your debts from highest interest rate to lowest.
- Pay the minimum payment on every debt.
- Put any extra money toward the highest interest rate.
- Once that debt is paid off, roll its payment into the next highest rate.
- Repeat until everything is paid off.
This strategy attacks the most expensive debt first.
Why people choose the avalanche method
- You usually pay less interest overall
- It is mathematically efficient
- It reduces long term costs
Downsides of the avalanche method
- Early progress can feel slow
- Large balances may take longer to clear
- Motivation can drop early on
Debt Snowball vs Debt Avalanche at a Glance
Debt Snowball
- Focuses on smallest balance first
- Strong psychological motivation
- Faster early wins
- Higher interest cost overall
Debt Avalanche
- Focuses on highest interest first
- Saves more money long term
- Slower early wins
- Requires patience and discipline
Which One Should You Use?
The best method is the one you will actually stick to.
Choose the debt snowball if:
- You feel overwhelmed by multiple debts
- You need quick wins to stay motivated
- You have struggled to stick with repayment plans before
Choose the debt avalanche if:
- You are disciplined and patient
- You want to minimize interest costs
- You are comfortable with slower early progress
There is no wrong choice. Consistency matters more than strategy.
Can You Combine Both Methods?
Yes.
Many people start with the snowball method to build momentum, then switch to the avalanche once they feel more confident.
What matters most is that you:
- Make payments every month
- Avoid adding new debt
- Increase payments when possible
Use Our Debt Payoff Calculators
You can try both strategies and see the difference for your own situation.
Use our Debt Snowball Calculator:
Create a snowball payoff plan
Use our Debt Avalanche Calculator:
Create an avalanche payoff plan
Seeing the numbers side by side often makes the choice much clearer.
Final Thought
Getting out of debt is not just a math problem. It is a behavior problem.
Pick the strategy that keeps you motivated, consistent, and moving forward. That is the one that will actually work.