Debt Snowball vs. Debt Avalanche

01

What both strategies share

List each balance, APR, and minimum payment. Continue every required minimum, then direct the same extra monthly amount to one target. When that debt is paid, roll its former payment into the next target. The strategy changes the order—not the total amount available each month.

Before accelerating unsecured debt, make sure essential bills and minimums remain current. A small cash buffer may prevent the next unexpected expense from returning to a credit card.

02

Avalanche: highest rate first

The avalanche targets the active debt with the highest APR. Because expensive balances are reduced sooner, this order is mathematically designed to reduce total interest when the monthly budget and payment behavior are otherwise identical.

Its disadvantage is emotional rather than mathematical. If the highest-rate balance is large, the first account may remain open for a long time, making progress less visible.

03

Snowball: smallest balance first

The snowball targets the smallest current balance regardless of APR. Closing a small account can create a quick milestone and release its minimum payment into the next target.

The possible cost is additional interest when a larger high-rate balance waits. The right question is not whether motivation matters—it does—but how much the motivational preference costs in the specific debt list. A comparator makes that tradeoff visible.

ACTION PLAN

What to do next

1. Stop adding new charges where possible.
2. Record balances, APRs, and minimums from statements.
3. Choose an extra amount that can be sustained.
4. Automate minimums and send extra to the current target.

FAQ

Common questions