When I first started getting serious about paying off debt, I remember sitting at my desk with a calculator, bills spread out everywhere, feeling completely overwhelmed. Student loans, credit cards, and a lingering car payment, I had no idea where to start.
That’s when I came across two repayment strategies that people swear by: the Debt Snowball and the Debt Avalanche. Both promise to help you get out of debt faster, but they work in different ways. Over the years, I’ve experimented with both methods and talked with friends who used them. The truth? Neither is “perfect” the best choice depends on your personality, your habits, and your financial goals.
What Is the Debt Snowball Method?
The Debt Snowball focuses on quick wins. Here’s how it works:
- List your debts from the smallest balance to the largest, ignoring interest rates.
- Pay minimums on all debts except the smallest one.
- Put every extra dollar toward that smallest debt until it’s gone.
- Move to the next smallest debt, rolling the payments forward like a snowball.
When I tried this method with my credit cards, I found it incredibly motivating. Paying off a $600 store card completely gave me a psychological boost. It felt like progress, even though that card didn’t have the highest interest rate.
Why People Like It
- Builds momentum and confidence.
- Feels rewarding because debts disappear faster.
- Simple to follow without doing a lot of math.
The Downside
- You might pay more interest overall compared to the Avalanche method.
- Not always the most efficient if you’re focused strictly on saving money.
The debt snowball method is often recommended for beginners because it helps you stay consistent with debt repayment.
What Is the Debt Avalanche Method?
The Debt Avalanche takes a different approach:
- List your debts by interest rate, from highest to lowest.
- Pay minimums on all debts, but put extra money toward the one with the highest interest rate first.
- Once it’s paid off, move to the next highest rate.
I switched to this method later because one of my credit cards had an interest rate of nearly 25%. Tackling it first saved me a significant amount of money in the long run.
Why People Like It
- Saves the most money on interest.
- Can help you get out of debt faster overall.
- Focuses on financial efficiency.
The Downside
- Progress feels slower, since high-interest debts often have larger balances.
- Some people lose motivation before seeing results.
If your goal is to pay off debt faster and save money on interest, the debt avalanche strategy usually works better.
Snowball vs. Avalanche: A Side-by-Side Example
Let’s say you have three debts:
- $600 credit card at 18% interest.
- $3,000 personal loan at 10% interest.
- $5,000 student loan at 6% interest.
With Debt Snowball:
You’d pay off the $600 card first, then the $3,000 loan, and finally the $5,000 loan. The motivation comes from clearing out a balance quickly.
With Debt Avalanche:
You’d start with the $600 card (because of the 18% interest), then the $3,000 loan, and lastly the student loan. Interestingly, in this case, both methods start with the credit card but if balances and interest rates were different, the strategies would diverge.
I once ran my numbers through an online calculator, and the Avalanche method saved me about $1,200 in interest compared to the Snowball. But I’ll admit, the Snowball gave me more motivation in the early days when I needed it most.
Which Method Works Better?
The honest answer is: it depends on you.
- If you’re someone who thrives on small wins and struggles to stay motivated, the Debt Snowball is probably your best bet. Clearing debts quickly keeps you engaged.
- If you’re disciplined and numbers-driven, and saving the most money matters most, the Debt Avalanche is the smarter choice.
From experience, I’ve seen people quit halfway with Avalanche because the first debt took too long. On the flip side, I’ve also seen people stick with Snowball for years but end up paying thousands more in interest.
Can You Combine the Two?
Absolutely. Some people use a hybrid approach , which is starting with Snowball for momentum, then switching to Avalanche once they’re confident. That’s what worked best for me. After wiping out my smallest debts, I shifted to Avalanche to attack the high-interest ones aggressively.
A hybrid debt repayment strategy can give you both motivation and financial efficiency.
How to Decide Which Is Right for You
Here are some questions I asked myself that helped me choose:
- Do I need quick wins to stay motivated? (Snowball)
- Am I patient enough to wait for long-term savings? (Avalanche)
- Which hurts me more: paying extra interest or feeling stuck?
- What’s my ultimate goal - faster freedom from debt or maximum savings?
When you answer honestly, the better strategy becomes clear.
Final Thoughts
Both the Debt Snowball and the Debt Avalanche can help you achieve the same goal: becoming debt-free. The real difference lies in how you stay motivated along the way.
I’ve used both, and I don’t think one is universally “better.” It’s about matching the method to your personality. If you need momentum, Snowball is your friend. If you want efficiency, Avalanche is the way. And if you’re like me, combining the two might be the perfect balance.
At the end of the day, the “best” method is the one you’ll actually stick with until the debt is gone.