Debt Snowball vs. Avalanche: Which Pays Off Faster?
Both methods start the same way: pay the minimum on every debt, then put every extra dollar on one target debt. When the target is gone, its payment rolls onto the next one. That roll-over is the "snowball" — your attack payment keeps growing.
The only difference: which debt is the target
- Snowball: smallest balance first. You knock out whole accounts fast, which many people find motivating.
- Avalanche: highest interest rate (APR) first. Mathematically this almost always costs the least interest.
When the gap is big — and when it is tiny
The difference grows when your highest-rate debt is also your biggest balance, and when rates are far apart (say a 29% store card next to a 4% car loan). When your rates are similar, or your smallest debt also has the highest rate, the two methods come out nearly the same.
How to choose
- Run your real numbers in the calculator. It shows months and interest for both.
- If avalanche saves only a little, pick snowball for the wins.
- If avalanche saves a lot, consider it — or do a hybrid: kill one tiny debt for a quick win, then switch to avalanche.
The best method is the one you will still be doing in month 14.