Tackle Debt with a Plan: Snowball vs. Avalanche Method
When you're ready to tackle your debt, it helps to have a clear strategy. Two of the most popular methods — the Snowball and the Avalanche — can help you stay motivated and make real progress. Both are proven approaches that offer different benefits, depending on your personality, goals, and financial situation.
Let’s break them down:
The Snowball Method
The Snowball method focuses on paying off your smallest debt first, regardless of the interest rate.
How it works:
- List your debts from smallest balance to largest.
- Make minimum payments on all your debts.
- Put any extra money toward the smallest debt.
- Once that debt is paid off, roll the amount you were paying into the next smallest debt — and repeat.
Why people like it:
- You get a quick win by knocking out a small balance.
- Make minimum payments on all your debts.
- That momentum can boost confidence and motivation.
- It’s a great option if debt feels overwhelming and you need to build consistency.
The Avalanche Method
The Avalanche method focuses on paying off the debt with the highest interest rate first to save the most money over time.
How it works:
- List your debts by interest rate (highest to lowest).
- Make minimum payments on all your debts.
- Put any extra money toward the debt with the highest interest rate.
- Once it’s paid off, move to the next highest — and so on.
Why people like it:
- You’ll likely pay less in interest overall.
- It’s more mathematically efficient and gets you out of debt faster if you stay the course.
- It’s ideal if you’re motivated by long-term savings.
So... Which is Better?
There’s no one-size-fits-all answer. The best strategy is the one that keeps you going.
- If motivation is your biggest barrier, the Snowball method may help you feel more in control.
- If interest costs are your biggest concern, the Avalanche method might be your best bet.
You can even combine the two: start with Snowball to build momentum, then switch to Avalanche to reduce interest.
Want a Second Opinion?
Our certified credit counselors can help you decide whether the Snowball or Avalanche method is the best fit — or explore other personalized options (including creditor-sanctioned hardship plans) based on your full financial picture. Schedule a free, no-obligation session today and take the next step toward a plan that works for you.
