What is the Debt Snowball Method?

The Debt Snowball method focuses on paying off your smallest debt balances first, regardless of interest rates. You make minimum payments on all debts, then put any extra money toward the smallest balance. Once that debt is paid off, you "snowball" that payment amount into the next smallest debt.

Pros: Provides quick psychological wins, which can be highly motivating. Seeing debts disappear faster can help you stay committed to your payoff plan.

Cons: May cost more in total interest if smaller debts have lower APRs than larger debts.

What is the Debt Avalanche Method?

The Debt Avalanche method focuses on paying off your highest interest rate debts first, regardless of balance size. You make minimum payments on all debts, then put any extra money toward the debt with the highest APR. Once that debt is paid off, you "avalanche" that payment amount into the next highest APR debt.

Pros: Mathematically optimal—saves the most money in interest over time. Gets you debt-free faster in most cases.

Cons: May take longer to see your first debt paid off if high-APR debts have large balances, which can feel less motivating.

Which Strategy Saves More Interest?

In most cases, the Debt Avalanche method saves more money because it attacks the most expensive debt (highest APR) first. However, the difference depends on your specific debt balances and interest rates. Use this calculator to see the exact difference for your situation.

If all your debts have similar APRs, both strategies will cost about the same. If you have a mix of high and low APRs, Avalanche will typically save significantly more.

Why Might Someone Still Choose Snowball?

While Avalanche is mathematically superior, Snowball can be better for motivation and behavior change. Many people find that seeing debts disappear quickly (even if they're smaller) provides the psychological boost needed to stay committed. If you're struggling with debt and need wins to keep going, Snowball might be the better choice for you.

The best strategy is the one you'll actually stick to. If Snowball keeps you motivated and paying extra, it may be worth the slightly higher interest cost.