Debt snowball vs. debt avalanche
Scenario. Both methods pay every debt's minimum, then throw all extra money at one target debt. The snowball targets the smallest balance; the avalanche targets the highest interest rate. Everything else is identical.
| Snowball (smallest balance first) | Avalanche (highest rate first) | |
|---|---|---|
| Target order | Smallest balance first | Highest interest rate first |
| Total interest paid | Slightly higher | Lowest possible |
| Time to debt-free | Same or slightly longer | Same or slightly shorter |
| First debt eliminated | Soonest — early momentum | Depends on which debt is priciest |
| Typical gap between the two | — | Often just a few hundred dollars and 0–2 months |
Run “Snowball (smallest balance first)” → · Run “Avalanche (highest rate first)” →
The only difference is the target order
Both plans are the same machine: pay minimums everywhere, then aim every spare dollar at one debt until it is gone, then roll that freed-up payment onto the next. The avalanche picks the highest-rate debt as the target, which is mathematically optimal — it removes the most expensive interest first. The snowball picks the smallest balance, which clears individual debts fastest and gives you a visible win early.
How to choose
For most people's debt profiles the two finish within a few months and a few hundred dollars of each other. If your highest-rate debt is also a large one, the avalanche's edge grows. If you have struggled to stick with a payoff plan before, the snowball's early wins are worth more than the small interest difference.
Frequently asked questions
Which is better, snowball or avalanche?
How much does the snowball cost me?
Can I switch methods partway through?
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Terms: Debt-to-income ratio (DTI) , Interest