Debt avalanche vs snowball

With $600 a month for debt repayment, both methods get you debt-free — but they take different routes. One saves more money, and the other keeps more people going. Here’s how to choose.

The basics

With either method you pay the minimum on every debt and put all your extra money towards one target debt. When the target is paid off, its payment “rolls over” to the next debt on your list. The only difference is the order you pick.

• Avalanche: target the debt with the highest interest rate first.
• Snowball: target the debt with the smallest balance first.

A worked example

Say you have $600 a month for debt repayment and three debts:

In this case both methods start with the store card, because it has the smallest balance and the highest rate. After that they agree again (credit card, then car loan), so the result is identical. The methods only give different answers when a small debt has a low rate. For example, if a $1,500 medical bill at 0% were on the list, snowball would clear it first. Avalanche would leave it until last and save more interest overall.

Avalanche: pros and cons

• ✅ Mathematically the cheapest. You pay the least total interest.
• ✅ Usually the fastest route to being debt-free.
• ❌ If your highest-rate debt is also large, it can take months to see the first one paid off.

Snowball: pros and cons

• ✅ Quick wins. Closing an account early gives you momentum.
• ✅ Fewer bills to juggle, sooner.
• ❌ Usually costs more in interest than the avalanche method.

Which should you choose?

If you’re disciplined and motivated by numbers, use the avalanche. If you’ve tried before and lost steam, the snowball‘s early wins may be worth the extra interest. The best plan is the one you’ll stick with. Either one beats paying only the minimums.

Use our credit card payoff calculator to see how much faster a bigger monthly payment gets you there.

Boost either method

• Look for a 0% balance transfer or a lower-rate consolidation loan. Check the fees first, using the loan calculator.
• Put windfalls such as tax refunds and bonuses straight onto the target debt.
• Stop new borrowing while you pay down the old.

General information only. If debt feels unmanageable, contact a non-profit credit counselor (US) or StepChange / MoneyHelper (UK) for free advice.