Debt Snowball vs Debt Avalanche

When paying off debt, choosing the right strategy can make the process feel more manageable. Two popular methods are the debt snowball and debt avalanche approaches. Both can work — the best choice depends on your priorities.

What is the debt snowball method?

The debt snowball method focuses on paying off your smallest balances first while making minimum payments on all other debts. Once a balance is paid off, you roll that payment into the next smallest debt.

• Provides quick wins early
• Can boost motivation
• Simple to follow

What is the debt avalanche method?

The debt avalanche method prioritizes debts with the highest interest rates first. This approach can reduce the total interest paid over time, but progress may feel slower at the beginning.

• Minimizes total interest paid
• Often faster mathematically
• Requires patience early on

Key differences

• Snowball focuses on balance size
• Avalanche focuses on interest rate
• Motivation vs cost savings

Which method is better?

There’s no single right answer. If staying motivated is your biggest challenge, the snowball method may help you stay consistent. If saving money on interest is your top goal, the avalanche method may be more effective.

You can also combine strategies

Some people start with the snowball method for quick wins and switch to the avalanche approach later. The most important factor is choosing a strategy you can stick with.