Debt Avalanche vs. Debt Snowball
Two proven DIY strategies for paying off debt faster, one saves more money, the other builds more momentum. Here's how each works.
In This Article
The Debt Avalanche Method
List your debts from highest interest rate to lowest. Pay minimums on everything, then throw every extra dollar at the highest-rate debt first. Once it's paid off, roll that payment into the next-highest rate debt, and repeat.
The Debt Snowball Method
List your debts from smallest balance to largest, regardless of interest rate. Pay minimums on everything, then put extra money toward the smallest balance first. Once it's gone, roll that payment into the next-smallest balance.
Which Saves More Money?
Mathematically, the avalanche method almost always saves more in total interest, since you eliminate your most expensive debt first.
Which Builds More Motivation?
The snowball method tends to produce faster "wins", paying off a full account early can provide the psychological momentum many people need to stick with a payoff plan long-term.
Which Should You Choose?
If you're disciplined and motivated purely by the math, avalanche saves the most money. If you've struggled to stick with payoff plans before, snowball's quick wins may help you actually finish.
When Neither Method Is Enough
If your minimum payments alone are unmanageable, or your total debt is large relative to your income, DIY payoff strategies may not be realistic, in that case, debt settlement, consolidation, or credit counseling may be worth exploring. Try our Debt Payoff Calculator to see which method fits your numbers.
Debt Avalanche vs. Debt Snowball, Side by Side
Avalanche
- Order
- Highest interest rate to lowest
- Saves the most money
- Yes, eliminates the most expensive debt first
- Best for
- Consumers motivated purely by the math
Snowball
- Order
- Smallest balance to largest, regardless of interest rate
- Saves the most money
- No, may cost a bit more in interest
- Best for
- Consumers who need quick wins to stay motivated
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This article was researched using publicly available information from government agencies, consumer protection organizations, and, where applicable, official lender or provider disclosures. Sources were compared for accuracy before publication and are periodically reviewed for updates. See our Research Process and Content Review Policy for details.
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