Debt Snowball vs Avalanche
Both methods can work. The better option is the one you can follow consistently and confidently.
Snowball focuses on quick wins. Avalanche focuses on reducing interest. Based on your inputs, either route could be the right fit.
Debt Snowball
Pay smallest balances first, then roll payments into larger balances.
- Builds psychological momentum with faster early wins
- Can be easier to sustain if motivation is your main barrier
- May cost more interest than avalanche
Debt Avalanche
Pay highest APR balances first while making minimum payments on others.
- Usually reduces total interest paid
- Can shorten total payoff time in many scenarios
- Early visible wins may take longer
Practical way to choose
If your main challenge is staying consistent, snowball may help. If your priority is reducing cost, avalanche may be a better fit. Run your numbers side by side before deciding.
- Choose snowball if motivation and momentum are your priority.
- Choose avalanche if reducing estimated interest is your priority.
- Re-run your plan monthly as balances and rates change.