Debt Snowball vs. Debt Avalanche: Which Method Is Best for Crushing Debt?
If you're staring down a pile of debt, you're not alone—and you're not without options. Two of the most popular strategies for paying off debt are the Debt Snowball and the Debt Avalanche methods. Both can help you become debt-free faster than minimum payments alone, but they go about it in very different ways.
So which one should you choose? Let’s break it down.
What Is the Debt Snowball Method?
The Debt Snowball method is all about building momentum. Here’s how it works:
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List all your debts from smallest to largest balance.
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Make minimum payments on all debts except the smallest.
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Throw every extra dollar at the smallest debt until it’s gone.
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Once that debt is paid off, roll its payment into the next smallest debt.
Pros of the Snowball Method:
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Psychological wins: Knocking out small debts quickly can feel motivating.
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Simple to follow: You don’t have to do complex calculations.
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Great for people who need quick wins to stay motivated.
Cons:
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You might pay more interest over time, especially if your larger debts have higher interest rates.
What Is the Debt Avalanche Method?
The Debt Avalanche method focuses on saving money on interest. Here's how it works:
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List all your debts, this time from highest to lowest interest rate.
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Make minimum payments on all debts except the one with the highest rate.
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Attack the highest interest debt with any extra money.
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Once it’s paid off, move to the next highest interest rate debt.
Pros of the Avalanche Method:
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You’ll pay less in interest over time.
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You’ll likely become debt-free faster, assuming you stay consistent.
Cons:
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You might wait longer to see your first debt paid off, which can feel discouraging.
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Requires a little more discipline and patience.
Which Debt Repayment Method Is Better?
It depends on your personality and priorities:
| Feature | Debt Snowball | Debt Avalanche |
|---|---|---|
| Focus | Smallest balance first | Highest interest first |
| Best for | Quick wins & motivation | Saving money long-term |
| Time to feel progress | Faster | Slower |
| Total interest paid | Higher | Lower |
| Complexity | Low | Medium |
Real Talk: What Works for You?
If you’re motivated by quick progress and need emotional wins to stay on track, go with the Snowball. If you’re analytical and motivated by saving money, the Avalanche is your best bet.
But here's a secret: The best method is the one you’ll stick with. Both will help you pay off your debt faster than doing nothing—or making minimum payments forever.
Pick a strategy, commit to it, and start chipping away. Future you will thank you.
Final Thought
Paying off debt isn’t just about math—it’s also about behavior. Whether you choose the snowball or the avalanche, you’re making a powerful decision to take control of your finances.
Ready to start? Let’s get rolling.