Snowball vs. Avalanche: What’s the Difference?

When it comes to debt repayment, two of the most popular strategies are the Debt Snowball and the Debt Avalanche. Both can help you become debt-free, but they work in slightly different ways depending on your personality and goals.

🔹 Debt Snowball Method

• How it works:
  List your debts from smallest balance to largest balance, regardless of interest rate.
  Pay the minimums on all debts, then put any extra money toward the smallest debt first.

• Why people like it:

  • Provides quick “wins” by eliminating smaller debts faster.

  • Builds motivation and momentum, which helps people stay consistent.

• Best for you if:
  You’re motivated by progress and need to see debts disappear quickly to stay on track.

🔹 Debt Avalanche Method

• How it works:
  List your debts from highest interest rate to lowest interest rate, regardless of balance.
  Pay the minimums on all debts, then put any extra money toward the highest-interest debt first.

• Why people like it:

  • Saves the most money on interest over time.

  • Gets you out of debt faster (mathematically) if you stick with it.

• Best for you if:
  You’re motivated by saving money and want the most efficient path to being debt-free.

Which One Should You Choose?

• If you need emotional wins → go with Snowball.

• If you want mathematical savings → go with Avalanche.

Both strategies work. The most important thing is to start, stay consistent, and keep making payments.

👉 Try both methods in the calculator below to see which one fits your style best!