Debt Snowball vs. Debt Avalanche

The two most popular methods for crushing debt fight a battle between Math and Psychology. Which one is right for you?

The Debt Avalanche (The Math Choice)

The Debt Avalanche method targets your debts with the highest interest rates (APR) first, regardless of the balance.

How it works:

You pay minimums on everything, and throw every extra dollar at the loan with the highest interest rate. Once it's gone, you move to the next highest rate.

  • Why it works: By eliminating high-interest debt first, you minimize the compound interest working against you.
  • The Result: You will mathematically get out of debt faster and pay less total money than any other method.
  • The Downside: If your highest-interest debt is a large student loan, it might take years to see your first "paid in full" victory.

The Debt Snowball (The Psychology Choice)

The Debt Snowball method targets your debts with the smallest balances first, ignoring the interest rate entirely.

How it works:

You attack the smallest debt with intensity. Once it's gone, you take that payment and "roll it" into the next smallest debt, creating a growing payment snowball.

  • Why it works: Quick wins. Paying off a $500 medical bill in month one feels great. That dopamine hit keeps you motivated to stick with the plan.
  • The Result: You pay slightly more in interest over time, but studies show you are statistically more likely to actually finish paying off your debt.
  • The Downside: You might hold onto a 25% APR credit card longer than necessary while paying off a 0% interest medical bill.

Run Your Numbers

Don't guess which is better. Input your debts to see the exact difference in interest paid and payoff dates.

Compare Snowball vs. Avalanche

Which one should you choose?

Ultimately, the best method is the one that keeps you paying. An imperfect plan you stick to is better than a perfect plan you quit.

Choose Avalanche If:

You are disciplined, numbers-driven, hate inefficiency, and want the mathematically optimal path.

Choose Snowball If:

You have struggled with debt before, need motivation to keep going, or have many small debts cluttering your financial life.