Debt Snowball vs. Debt Avalanche: Which One Works Best?
- Greg Raphan
- Feb 5
- 4 min read
Updated: Sep 5
If you want to get out of debt, the method you choose should help you take action and keep going. The two most common approaches are the Debt Snowball and the Debt Avalanche. One emphasizes quick wins to build momentum. The other minimizes total interest if you stay consistent. This guide will help you pick the one that fits you and your goals.
TL;DR
Snowball: pay the smallest balances first to win early and stay motivated.
Avalanche: pay the highest interest rates first to save the most interest over time.
The best choice is the one you will stick with.
Side-by-Side Comparison
Markdown table (use if your editor supports tables)
Factor | Snowball | Avalanche |
Order | Smallest balance first | Highest interest rate first |
Motivation early on | High (quick wins) | Low to medium |
Total interest paid | Usually higher | Usually lower |
Simplicity | Very simple | Simple, but requires patience |
Best for | Getting unstuck, building habits | Minimizing interest over time |
Pitfalls | Switching methods midstream | Quitting before early wins happen |
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.
Pick Your Method in 3 Steps
Do you stall without quick wins? Choose Snowball.
Are you patient and consistent even when progress feels slow? Choose Avalanche.
Whichever you pick, automate minimums, schedule a monthly check-in, and increase extra payments over time.
Quick Examples (simple numbers)
Example A: Snowball for momentum
Debts: $650 store card at 24%, $1,800 credit card at 19%, $5,200 personal loan at 10%
You pay minimums on all three and throw all extra at the $650 first. It vanishes fast, which boosts motivation. You then roll that payment to $1,800, and so on.
Example B: Avalanche for interest savings
Same debts. You attack the 24% card first, even though it is not the smallest. You will usually pay less total interest over time, provided you stick with the plan.
Tip: If you feel stuck on Avalanche early, it is fine to switch to Snowball to get one or two quick wins, then go back.
Common Pitfalls and Fixes
New debt while paying off old debt. Fix: pause new credit, build a small starter emergency fund, and keep spending inside a written budget.
Switching methods every few weeks. Fix: commit for 60 to 90 days before revisiting.
Inconsistent extra payments. Fix: automate a fixed extra amount right after payday.
FAQ
Which one is faster?
It depends on your balances and rates. Avalanche often wins on total interest if you stay consistent. Snowball often wins on motivation, which helps people actually finish.
Can I combine them?
Yes. Many people do a “Snow-lanche”: use Snowball for the first one or two quick wins, then switch to Avalanche. However, we generally suggest sticking with the Snowball Method after you start it.
What if my interest rates change?
Review your list monthly. If a rate jumps, reorder the Avalanche list or keep Snowball if momentum matters more to you.
How big should my emergency fund be while I pay off debt?
A small starter fund (for example, $1,000 or one month of essentials) can prevent new debt while you pay off balances. After debt is gone, build 3 to 6 months.
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
Trying to find some extra cash to kickstart your debt snowball or avalanche? Check out our Buying Groceries on a Budget article
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