When you’re buried in debt, figuring out how to start paying it off can feel overwhelming. That’s where the snowball and avalanche methods come in — two simple yet powerful debt payoff strategies. But which one is better for you?
In this article, we’ll break down both methods, show you how they work with real examples, and help you decide which fits your personality and money habits. We’ll also include a free printable tracker at the end to help you stay on course.
Contents
What Is the Snowball Method?
The snowball method helps you build momentum by focusing on paying off your smallest debt first, regardless of the interest rate.
How to use it:
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List your debts from smallest to largest balance.
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Pay the minimum on all debts except the smallest.
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Throw all extra money at the smallest debt.
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Once it’s paid off, roll that payment into the next smallest debt.
This approach gives you fast wins, which helps you stay motivated and consistent.
Pros of the Snowball Method:
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Easy to follow
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Encourages quick progress
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Helps you stay emotionally engaged
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Reduces the number of bills you’re juggling quickly
Cons:
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You may pay more in interest over time
What Is the Avalanche Method?
The avalanche method focuses on saving the most money by paying off your highest-interest debt first.
How to use it:
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List your debts by interest rate, highest to lowest.
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Pay the minimum on all debts except the one with the highest rate.
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Throw all extra money at the highest-interest debt.
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Once it’s gone, move to the next highest interest rate.
This method is best for cutting costs and getting out of debt faster overall.
Pros of the Avalanche Method:
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Saves money in interest
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Gets you out of debt faster (mathematically)
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Ideal for people who like data and logic
Cons:
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May take longer to feel progress
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Less emotional reinforcement in the beginning
Example: Same Debts, Different Approaches
Let’s say you have these debts:
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Credit Card A: $400 at 22% interest
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Store Card B: $1,000 at 18% interest
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Personal Loan: $5,000 at 10% interest
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Student Loan: $3,000 at 5% interest
With the Snowball Method, you start with Credit Card A ($400), regardless of the 22% interest. You’ll feel great knocking it out quickly and move onto Store Card B.
With the Avalanche Method, you still start with Credit Card A because it has the highest interest — but then you’d move to Store Card B, then Personal Loan, and finally Student Loan.
In this case, both methods start the same, but diverge later.
How to Choose: Snowball vs Avalanche
Ask yourself:
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Do you need motivation and emotional wins? Pick Snowball.
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Do you want to save the most money? Pick Avalanche.
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Are your smallest balances also the highest interest? Either will work.
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Do you give up easily when you don’t see results? Snowball may keep you going.
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Are you disciplined and love spreadsheets? Avalanche might be better.
Remember: the best strategy is the one you’ll stick with.
Hybrid Approach: Best of Both Worlds
Some people start with snowball to build the habit, then switch to avalanche once they’re motivated and disciplined.
You can also:
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Knock out one small debt for a quick win
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Then switch to the highest-interest debt next
This keeps you emotionally engaged while still reducing interest faster.
Real Case Study: Sarah and James
Sarah had $6,000 in debt split across three cards. She used the snowball method and paid off the smallest card in 2 months. That boost gave her confidence and discipline. She became debt-free in 18 months.
James used the avalanche method. He focused on his highest-interest debt but felt discouraged because it took 6 months to see progress. He gave up halfway through and went back to minimum payments.
Sarah paid more in interest than James would have, but she actually finished. That’s the power of picking the method that fits your mindset.
Step-by-Step Action Plan
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List all your debts, including balance, interest rate, and minimum payment.
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Decide which method to use.
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Build a small emergency fund if you don’t have one.
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Set all minimum payments on autopay.
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Apply extra money to your chosen debt.
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Track your progress monthly.
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Celebrate each milestone!
Myths to Ignore
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“The avalanche method is always better.” — Not if you quit halfway.
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“I should close old credit cards when paid off.” — Nope! Keep them open to help your credit utilization.
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“I should never carry any debt.” — Not all debt is equal. A mortgage is different from high-interest credit card debt.
Download the Printable
Use this PDF to:
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Compare snowball and avalanche approaches
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List your debts and plan your attack
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Track monthly payments and balances