Debt Avalanche vs Debt Snowball: Which Is Best for You?
Intro
When you’re staring at multiple debts — credit cards, loans, medical bills — it can feel impossible to know where to start. Two of the most popular payoff methods are the Debt Avalanche and the Debt Snowball. Both work, but in different ways.
Here’s a simple breakdown to help you decide which one fits your situation.
👉 As an advisor, I’ve seen both strategies work. The “best” one is the one you’ll actually stick with.
🧊 The Debt Snowball Method
How it works:
List your debts from smallest balance to largest.
Pay minimums on everything, then throw all extra money at the smallest debt first.
Once it’s paid off, roll that payment into the next debt.
Why it works:
Builds quick wins and momentum.
Great for motivation if you need to see progress fast.
Example:
Credit Card A: $500
Credit Card B: $2,000
Loan C: $10,000
With snowball, you’d attack Card A first, then move to Card B, then Loan C.
👉 I like Snowball for people who need the psychological boost. Paying off a debt completely feels amazing, and it keeps you going.
🔥 The Debt Avalanche Method
How it works:
List your debts from highest interest rate to lowest.
Pay minimums on everything, then throw all extra money at the highest interest rate debt first.
Once it’s gone, move to the next highest.
Why it works:
Saves the most money on interest.
Gets you out of debt faster (mathematically).
Example:
Credit Card A: $500 @ 19%
Credit Card B: $2,000 @ 15%
Loan C: $10,000 @ 6%
With avalanche, you’d attack Card A first, because 19% interest grows the fastest.
👉 I usually recommend Avalanche because it’s the most efficient. But if you give up halfway, efficiency doesn’t matter.
✅ Final Thoughts
Both Debt Avalanche and Debt Snowball work — the right choice depends on your personality.
If you’re motivated by quick wins → Snowball.
If you’re motivated by saving money → Avalanche.
👉 My advice: pick one, commit, and stick with it. The worst strategy is no strategy at all.
Key Takeaways
Snowball = motivation, Avalanche = efficiency.
Both methods require discipline and consistency.
The “best” method is the one you’ll actually follow through with.
