Two strategies, one goal
Both methods work. Both require discipline. The difference is in what keeps you going.
The Avalanche Method
How it works: Pay minimums on all debts. Put every extra dollar toward the debt with the highest interest rate. When that's paid off, move to the next highest.
Why it works: You pay the least total interest. Mathematically optimal.
The downside: If your highest-rate debt is also your biggest balance, it might take months before you see a debt disappear from your list. That can be demoralizing.
The Snowball Method
How it works: Pay minimums on all debts. Put every extra dollar toward the smallest balance. When that's paid off, roll its payment into the next smallest.
Why it works: Quick wins. You see debts disappearing from your list fast. That momentum is real and measurable — research from Harvard Business Review shows people are more likely to stick with the snowball method.
The downside: You'll pay more in total interest than the avalanche method.
How much more does snowball actually cost?
Here's the truth: for most people, the difference is smaller than you think. If your debts are relatively similar in interest rate (within a few percentage points), the total interest difference might be a few hundred dollars. If you have one debt at 29% APR and others at 7%, the avalanche advantage is significant.
Use our Debt Payoff Calculator to see the exact difference with your own numbers.
Our honest recommendation
Start with snowball unless:
- You have a debt with an interest rate 10+ points higher than the others (avalanche that one first)
- You're highly analytical and won't get discouraged by slow progress
- The interest difference in your specific situation is more than $500
The best debt payoff method is the one you'll actually stick with. A mathematically perfect plan you quit after 3 months loses to an imperfect plan you complete.
See both methods with your actual numbers
Enter your debts once, get avalanche and snowball side-by-side.
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