Debt Snowball vs Avalanche: Explained
The snowball method pays the smallest balance first, while the avalanche method targets the highest interest rate. The avalanche usually costs less interest, while the snowball offers earlier wins. Which is better for you depends on your habits.
Practical tips
- List every debt with balance, rate and minimum payment.
- Pay minimums on all and put extra on the target debt.
- When one is paid, roll its payment onto the next.
- Use the calculator to compare your own numbers.
Free calculator
Try the Debt Snowball Calculator with your own numbers.
Frequently asked questions
Which method saves more?
With the same extra payment, the avalanche generally pays less interest, though the difference depends on your debts.
Which one is easier to stick to?
Many people find early wins motivating, but it varies.