Debt Snowball vs Debt Avalanche
Both methods pay minimums on everything and put extra money toward one debt at a time. The difference is which debt you attack first.
Side by side
| Debt Snowball | Debt Avalanche | |
|---|---|---|
| Pay first | Smallest balance | Highest interest rate (APR) |
| Total interest | Same or higher | Lowest, mathematically |
| First payoff | Usually sooner | Can take longer |
| Best for | Staying motivated | Minimizing cost |
With the debt snowball, you list debts from smallest to largest balance. Paying off a small debt quickly frees its minimum payment, which then 'snowballs' into the next one.
With the debt avalanche, you list debts from highest to lowest APR. Every extra dollar goes where it stops the most interest, so the avalanche never costs more interest than the snowball when you pay the same total each month.
How big is the difference? It depends on how far apart your rates and balances are. If your smallest debt also has the highest rate, the two methods are identical. If a big balance carries a high rate, the avalanche can save a lot. Enter your debts above to see your exact numbers.
A hybrid also works: knock out one or two tiny balances for momentum, then switch to the avalanche.
Frequently asked questions
Is the avalanche method always cheaper?
Paying the same total each month, the avalanche results in the same or less total interest than the snowball, because extra money always goes to the highest rate.
Why do people choose the snowball?
Paying off accounts quickly can make it easier to stay committed. Research on consumer behavior has found that early wins help some people keep going.
Can I switch methods?
Yes. You can change your target debt any time. What matters most is keeping your total payment the same as debts are paid off.
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Not financial advice. Results are estimates for educational purposes. Talk to a qualified professional about your situation. Some links are affiliate links; see our disclosure.