Debt Snowball vs. Avalanche: Which Strategy Is Right for You?

The snowball and avalanche are the two most popular debt payoff strategies — and the debate between them has been going on for years. Here’s the honest truth: both work, and the “right” choice depends on you, not just the math.

The Key Difference

	Snowball	Avalanche
Targets	Smallest balance first	Highest interest rate first
Optimizes for	Motivation and quick wins	Minimum total interest
Best when	You need momentum to stay committed	You’re motivated by saving money
Potential downside	May pay slightly more interest	May wait longer for first payoff

How Snowball Works

You line up your debts from smallest balance to largest, then attack the smallest one with all your extra money. When it’s gone, you roll that payment into the next smallest. The satisfaction of eliminating debts keeps you going.

Try the snowball calculator to see your results.

How Avalanche Works

You line up your debts from highest interest rate to lowest, then focus extra payments on the most expensive debt. When it’s paid off, you move to the next highest rate. You save the most money over time.

Try the avalanche calculator to see your results.

A Real Comparison

Let’s say you have these debts and $200 extra per month:

Debt	Balance	APR	Min Payment
Medical bill	$800	0%	$50
Credit card	$4,200	22%	$100
Car loan	$12,000	5%	$250

With Snowball: You’d pay off the medical bill first (about 4 months), then the credit card, then the car loan. You get a quick win but the 22% credit card keeps accruing interest while you focus on the 0% medical bill.

With Avalanche: You’d target the credit card first (about 14 months), then the medical bill, then the car loan. You wait longer for your first payoff, but you save hundreds in interest.

When Snowball Wins

• Your debts have similar interest rates (the savings difference is negligible)
• You have several small debts you can knock out fast
• You’ve tried and failed with debt payoff before — you need the wins
• You know yourself and motivation matters more than optimization

When Avalanche Wins

• You have debts with very different rates (e.g., 24% credit card vs. 4% student loan)
• Your highest-rate debt isn’t dramatically larger than your other debts
• You’re disciplined and can wait for the first payoff
• Saving the maximum amount of money is what drives you

The Honest Answer

For most people, the difference in total interest between snowball and avalanche is smaller than they expect — often a few hundred dollars over the life of the plan. The much bigger risk is picking a strategy you abandon.

A completed snowball plan beats an abandoned avalanche plan every time.

The Third Option: Hybrid

Some people start with snowball to build confidence, then switch to avalanche once they’ve knocked out a couple of small debts and built momentum. There’s no rule that says you have to commit to one strategy forever.

Try Both

The best way to decide is to see the numbers for yourself. Run your debts through both calculators and compare:

• Snowball Calculator — see your quick-win timeline
• Avalanche Calculator — see your interest savings

Look at the difference in total interest and payoff time. If it’s small, go with snowball for the motivation. If it’s significant, consider avalanche — or at least start with avalanche and keep snowball as your backup plan.

You’re not choosing wrong either way. You’re choosing to take action, and that’s what matters most.