Snowball vs Avalanche: Which Strategy Wins?
When paying off multiple debts, the order matters. The two most popular strategies are the debt snowball and debt avalanche methods, and they take completely different approaches.
The Snowball Method
With the snowball method, you list your debts from smallest to largest balance. You pay minimums on everything, then attack the smallest debt with any extra money you have. Once that's paid off, you roll its payment into the next smallest debt—creating momentum as your payments "snowball" toward bigger debts.
This method is psychologically powerful. Quick wins keep you motivated, and many people find success with it because the behavior change is easier to maintain.
The Avalanche Method
The avalanche method targets debts by interest rate, starting with the highest rate first. Mathematically, this saves the most money because you're eliminating expensive debt faster. However, it can feel slower at first if your highest-rate debt also has a large balance.
Which Should You Choose?
Choose snowball if motivation is your challenge. Choose avalanche if you want to minimize total interest paid. Some people use a hybrid: snowball for psychological momentum, then switch to avalanche once they're confident they'll stick with it.