If you’re carrying multiple debts—credit cards, student loans, maybe even a car loan—you’re not alone. Millions of Americans are right there with you. And when you finally decide to tackle your debt head-on, one big question comes up: What’s the best way to pay it off?
Two popular strategies usually come up—Debt Snowball and Debt Avalanche. One gives you faster wins. The other saves you more money. But which one is right for you? And which one actually helps you get out of debt faster and cheaper?
This article will break it all down for you—how each method works, their pros and cons, and which might make the most sense based on your unique situation. Let’s get into it.
What Is the Debt Snowball Method?
The debt snowball method is all about momentum.
Here’s how it works:
- List all your debts from smallest to largest balance, regardless of interest rates.
- Make minimum payments on everything.
- Focus all your extra money on the smallest debt.
- Once that’s gone, roll the payment into the next smallest debt—and repeat.
It’s like knocking over dominoes. You get quick wins, which keeps you motivated. For many people, this motivation is the fuel they need to stick with their plan.
Let’s say:
- You owe $500 on Credit Card A
- $1,200 on Credit Card B
- $4,000 on a personal loan
You’d attack the $500 first. Even if the interest rate is lower, getting rid of it completely gives you a sense of progress. That boost can be huge.
Who is this best for?
- If you’re someone who needs motivation to stay on track.
- If your biggest struggle is consistency, not math.
What Is the Debt Avalanche Method?
The debt avalanche method is focused on math efficiency.
Here’s how it works:
- List all your debts from highest to lowest interest rate.
- Make minimum payments on all.
- Put all your extra money toward the debt with the highest interest.
- When that’s paid off, move to the next highest.
This method helps you save the most money in the long run because it reduces how much interest you’re paying overall.
Let’s say:
- You owe $2,000 at 22% interest
- $1,000 at 15% interest
- $500 at 5% interest
You’d pay off the $2,000 first—even though it’s the largest—because it’s costing you the most in interest every month.
Who is this best for?
- If you’re disciplined and motivated by numbers.
- If your priority is saving as much money as possible.
Visual Comparison: Snowball vs. Avalanche
| Feature | Debt Snowball | Debt Avalanche |
|---|---|---|
| Payment Order | Smallest debt first | Highest interest first |
| Focus | Motivation | Money saved |
| Time to Pay Off | Often longer | Usually shorter |
| Interest Paid | More | Less |
| Emotional Boost | High | Moderate |
| Best For | Beginners, emotional boost | Logical thinkers |
Which Strategy Saves More Money?
Debt Avalanche wins here.
Let’s look at an example:
Say you have:
- $1,000 at 20% interest
- $3,000 at 15%
- $6,000 at 5%
With the snowball, you’d pay off the $1,000 first—even though it’s charging the most interest. That delay costs you more money.
With the avalanche, you’d pay off the 20% debt first, saving hundreds in interest over time.
So yes, if you purely want to save money, Avalanche is the way to go.
But here’s the twist—most people don’t finish their debt payoff plan. That’s where Snowball shines. It helps you feel like you’re winning, which keeps you going.
Pros and Cons of the Debt Snowball Method
Pros:
- Quick wins = motivation
- Feels easier to stick with
- Builds confidence and momentum
Cons:
- You might pay more in interest overall
- Not the most “efficient” in terms of math
Pros and Cons of the Debt Avalanche Method
Pros:
- Saves the most money over time
- Gets you out of debt faster (usually)
- Less wasted interest
Cons:
- Harder to stay motivated early on
- Takes longer to feel progress
- Requires more discipline
Which Strategy Should You Choose?
It depends on you.
Ask yourself:
- Do I get discouraged easily? → Snowball may be better
- Do I want to save the most money? → Go with Avalanche
- Can I do both? → Yes. Many people start with the Snowball to build momentum and then switch to Avalanche.
There’s no one-size-fits-all. What matters is choosing a plan you’ll actually stick to.
Expert Opinions: What Financial Gurus Say
- Dave Ramsey is all-in on the Snowball method. He says it’s the best way to stay motivated and actually finish your plan.
- Other financial advisors lean toward Avalanche, especially for people with high-interest debt. It’s the smarter choice on paper.
Ultimately, even experts agree: the best method is the one that keeps you consistent.
Real-Life Stories
Jasmine’s Snowball Story: Jasmine had five credit cards. She felt overwhelmed, but the snowball helped her knock them out one by one. “When I paid off my first card, it was only $400. But I felt like a boss. I finally believed I could do this.”
Tony’s Avalanche Journey: Tony had $18,000 in debt. One card was charging 29% interest. He chose Avalanche and made an Excel sheet. “It was slower at first, but seeing my interest drop every month felt amazing. I saved over $1,200 in interest.”
Common Mistakes People Make
- Switching back and forth too often: Pick a method and stick with it.
- Not budgeting properly: You need to free up money to pay extra.
- Ignoring minimum payments: This hurts your credit and racks up fees.
- Skipping the emergency fund: Always build a small emergency cushion first ($500–$1,000) before going all-in on debt.
Tools and Apps to Help You
- Undebt.it – lets you build and compare both strategies
- You Need A Budget (YNAB) – excellent for planning extra payments
- EveryDollar – built around the snowball method
- Tally – helps automate high-interest debt payments
- Mint – helps track spending and budget for extra payments
Bonus Tips to Supercharge Your Progress
- Start a side hustle (Uber, freelance, tutoring)
- Use cashback apps (Rakuten, Ibotta)
- Sell unused stuff around the house
- Eat out less, cancel unused subscriptions
- Celebrate small wins—just don’t go into more debt doing it
Frequently Asked Questions
Can I combine both methods?
Yes. Start with Snowball for motivation, then switch to Avalanche to save money.
Will paying off debt improve my credit score?
Yes—especially if you reduce your credit utilization and make on-time payments.
Should I pay off collections first?
Generally yes, but talk to a financial advisor. Sometimes settling makes more sense.
What if I can’t make minimum payments?
Contact your creditors. Ask about hardship programs or consider talking to a credit counselor.
Conclusion
Debt Snowball or Debt Avalanche—there’s no wrong answer if you’re moving forward.
If you’re someone who needs fast wins and a sense of progress, go with the Snowball. If you’re more disciplined and driven by numbers, Avalanche can save you hundreds—maybe thousands—in interest.
The important part is that you start now and stay consistent. Pick a method that works for your personality, automate your plan as much as you can, and celebrate your progress along the way.
Because at the end of the day, debt freedom is the real win—and you deserve it.