Debt Snowball vs. Avalanche: Which Payoff Method Wins?
Two popular methods promise to crush debt. They differ on one question: do you pay by emotion, or by math? Read the full guide with step-by-step examples and practical tips.
If you carry several debts, the order you pay them off matters as much as the amount. The two best-known strategies attack that order very differently.
Snowball: motivation first
List debts smallest balance to largest. Pay the minimum on all, then throw every extra dollar at the smallest. Quick wins build momentum. Model the whole thing in our Debt Snowball and Avalanche Calculator.
Avalanche: math first
Pay the highest interest rate first. You save the most money and finish fastest, but the early progress can feel slow because big balances linger.
Do not forget the rate
Before choosing, compare the cost of your debt to what you might earn investing with the ROI Calculator. Sometimes it pays to invest while making minimum payments.