Which method saves more money?

The Debt Avalanche method will always save you the most money in interest, because you are tackling the highest-interest debt first. The difference can be significant, especially if you have high-interest credit card debt.

Which method is faster?

Mathematically, the Debt Avalanche is also slightly faster because you are paying less in total interest. However, if the psychological boost of the Debt Snowball helps you stay motivated and make consistent payments, it could end up being faster for you in practice.

Can I combine the two methods?

Yes! Some people start with the Snowball method to get a quick win by paying off a small debt, then switch to the Avalanche method to tackle the larger, high-interest debts. The best method is the one you can stick with.

Where can I see the impact of extra payments?

Our Loan Payoff Calculator is perfect for this. While it doesn't compare Snowball vs. Avalanche directly, it clearly shows how making extra payments on any loan can drastically reduce your payoff time and total interest paid.

Financial Planning

Debt Snowball vs. Avalanche: Which Debt Payoff Method is Best?

Ready to tackle your debt? This guide breaks down the two most popular payoff strategies—the behavior-focused Snowball and the math-focused Avalanche—to help you choose.

When you're ready to get serious about paying off debt, having a clear strategy is crucial. Two of the most popular and effective methods are the Debt Snowball and the Debt Avalanche. Both involve making minimum payments on all your debts and then directing any extra money toward one specific debt. The only difference is which debt you choose to target.

The Debt Snowball

Focuses on Behavior and Motivation

The Strategy:

List your debts from the smallest balance to the largest. Make minimum payments on everything, and throw all your extra cash at the smallest debt. Once it's paid off, you "roll" that entire payment amount onto the next-smallest debt.

Why it Works:

It's all about psychology. Paying off that first small debt provides a quick, powerful win, which builds momentum and keeps you motivated to continue. It feels great to eliminate a bill completely.

The Debt Avalanche

Focuses on Math and Efficiency

The Strategy:

List your debts from the highest interest rate to the lowest. Make minimum payments on everything, and throw all your extra cash at the debt with the highest interest rate. Once it's paid off, you apply that payment to the debt with the next-highest rate.

Why it Works:

It's the most financially optimal strategy. By eliminating high-interest debt first, you save the maximum amount of money on interest payments over the long run.

Which Method is Best for You?

There's no single right answer—it depends on your personality.

If you need quick wins to stay motivated, choose the **Debt Snowball**.
If you're disciplined and want to save the most money possible, choose the **Debt Avalanche**.

The most important thing is to pick one and stick with it. Both methods are powerful tools for achieving financial freedom. To see how extra payments on any loan can impact your payoff date, use our Loan Payoff Calculator.