Debt Snowball vs Debt Avalanche: Which Strategy Should You Use?

Mon, Sep 29, 2025

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Are you tired of juggling multiple debts and not seeing progress fast enough? Choosing the right debt payoff strategy can make a huge difference. Two of the most popular methods are the Debt Snowball and the Debt Avalanche. But which one is right for you?

What is the Debt Snowball Method?

The Debt Snowball method focuses on paying off your smallest debts first, regardless of interest rate. The idea is simple:

List all your debts from smallest balance to largest.
Make minimum payments on all debts except the smallest.
Put any extra money toward the smallest debt until it’s gone.
Repeat with the next smallest debt.

Why it works:

Quick wins keep you motivated.
You get psychological momentum by crossing debts off your list.

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What is the Debt Avalanche Method?

The Debt Avalanche method focuses on paying off debts with the highest interest rates first. Steps:

List all debts from highest interest rate to lowest.
Make minimum payments on all debts except the one with the highest rate.
Put any extra money toward that high-interest debt.
Once it’s gone, move to the next highest interest rate.

Why it works:

Saves you the most money on interest in the long run.
Faster overall debt payoff if you can stay disciplined.

Compare Strategies

Method	Focus	Motivation	Cost Savings
Debt Snowball	Smallest debt first	High (quick wins)	Moderate
Debt Avalanche	Highest interest rate	Moderate	High

Bottom line: Snowball = faster psychological wins. Avalanche = better long-term savings.

Try the Free Debt Calculator

Use our interactive calculator to see how fast you could pay off your debts with each strategy. Enter your balances, interest rates, and monthly payments to compare.

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Tips for Success

Stick to a budget — every extra dollar counts.
Automate your payments to avoid missed deadlines.
Celebrate small wins to stay motivated.

Ready to take control of your debt? Use the calculator above to create your own plan today, and see which method saves you the most money!