Debt Snowball vs. Avalanche: Which Pays Off Debt Faster?
Compare the debt snowball and debt avalanche methods — how each works, which saves more money, and how to choose the right one for you.
Jordan Avery
Contents
The debt snowball method
With the snowball method, you pay minimums on everything and throw all extra money at your smallest balance first. When it's gone, you roll that payment into the next-smallest debt.
The advantage is psychological: quick wins build momentum and keep you motivated.
The debt avalanche method
With the avalanche method, you target the debt with the highest interest rate first, regardless of balance. Mathematically, this saves the most money and time.
Which should you choose?
- Choose snowball if you need motivation and quick wins to stay consistent.
- Choose avalanche if you're disciplined and want to minimize total interest paid.
- Either works — the best method is the one you'll actually stick with.
Tips to pay off debt faster
- 1Always pay more than the minimum.
- 2Stop adding new debt while paying down balances.
- 3Consider a balance transfer for high-interest credit cards.
- 4Apply windfalls directly to your target debt.
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