Debt Snowball vs. Debt Avalanche: Which One Works Best?
- Greg Raphan
- Feb 5
- 2 min read
Paying off debt can feel like climbing a huge mountain—but don't worry, you’ve got this! Two popular ways to pay off debt are the Debt Snowball and Debt Avalanche methods. If you’ve ever wondered about the best way to tackle debt, you’ve probably heard the phrase "Debt snowball vs avalanche" and wondered which one actually works better. Let’s break it down so you can decide which one will get you debt-free the fastest!
What Is the Debt Snowball Method?
The Debt Snowball Method is all about small wins that build momentum—just like a snowball rolling down a hill, getting bigger and stronger as it moves.
How It Works:
List your debts from smallest to largest, ignoring the interest rate.
Pay the minimum on all debts except the smallest one.
Throw every extra dollar you can at the smallest debt until it’s paid off.
Once the smallest debt is gone, roll that payment into the next smallest debt and repeat the process.
Why It Works So Well:
✅ Quick wins keep you motivated
✅ It feels good to check debts off your list
✅ You stay focused and build momentum
The Debt Snowball is recommended by many financial coaches because motivation is key when paying off debt. Seeing those small victories keeps you going!
What Is the Debt Avalanche Method?
The Debt Avalanche Method focuses on saving money on interest by paying off the most expensive debt first.
How It Works:
List your debts from highest to lowest interest rate.
Pay the minimum on all debts except the one with the highest interest rate.
Put all extra money toward the highest-interest debt until it’s gone.
Once that debt is paid off, move to the next highest interest rate and repeat.
Why It Can Be Tougher to Stick With:
❌ Takes longer to see progress
❌ Doesn’t always feel rewarding early on
❌ Requires a lot of patience and discipline
While the Debt Avalanche can save money in the long run, it’s easy to get discouraged because it takes longer to see results.
Debt Snowball vs Avalanche - Which One Should You Choose?
Both methods work, but most people find the Debt Snowball more effective because staying motivated is half the battle!
If you’re someone who needs to see quick progress to stay excited, the Debt Snowball is your best bet. Watching your debts disappear one by one builds confidence and helps you keep going!
However, if you’re extremely disciplined and don’t need quick wins to stay on track, the Debt Avalanche can save you more in interest over time.
Final Thoughts: Just Get Started!
When it comes to the Debt Snowball vs Avalanche, the most important thing isn’t which method you choose—it’s taking action! The faster you start paying off debt, the faster you’ll be free.
💡 Debt Snowball = Motivation and Quick Wins
💡 Debt Avalanche = More Interest Savings Over Time
If you’re ready to get rid of debt but don’t know where to start, a financial coach can help you create a custom plan that fits your situation. Book your free consultation today!
Need help making your first budget? Check out our Ultimate Beginner’s Guide to Budgeting
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