Debt Avalanche vs. Snowball: Which Pays Off Faster?

Compare two proven payoff methods, how to choose, and the exact steps to start this week.

The two methods in one sentence

• Debt snowball: pay off smallest balance first for motivation.
• Debt avalanche: pay off highest interest rate first to save more money.

Which is faster?

• Avalanche usually costs less overall because it reduces interest the quickest.
• Snowball often ‘feels’ easier to stick with, which can matter more than math.

How to choose

• Choose avalanche if you’re motivated by numbers and want maximum savings.
• Choose snowball if you need quick wins to stay consistent.

The exact setup steps

• 1) List debts with balances, minimum payments, and APR.
• 2) Set a fixed ‘extra payment’ amount in your budget.
• 3) Pay minimums on everything, send extra to the target debt.
• 4) After payoff, roll that payment to the next debt (the ‘rollover’).

Avoid common mistakes

• Don’t stop contributing to basic savings if it causes you to swipe credit for emergencies.
• Don’t close old credit cards automatically—consider the impact on utilization and history.

Next step

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Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice.