Snowball or Avalanche? How to Choose the Best Way to Pay Off Debt

If your consumer debt has started to feel overwhelming, you’re not alone — and you can get out of it. The key? A plan that works with your mindset, not against it.

Two of the most popular ways to tackle debt are the Snowball and Avalanche methods. Both work. Both have helped people become debt free. But which one is right for you?

Let’s break it down.

The Snowball Method

The Snowball method is all about quick wins and building momentum.

How it works:

1. List all your debts from smallest balance to largest, ignore the interest rates for now.
2. Make minimum payments on every debt except the smallest one.
3. Throw everything you can at that smallest debt until it’s gone.
4. Once it’s cleared, roll the amount you were paying into the next smallest debt.
5. Repeat until you’re debt free.

Why people love it:

• It feels motivating
• You get early “wins” that keep you going
• Seeing a debt wiped gives you a dopamine boost!

Good for you if:

• You’ve tried and failed at sticking to a debt plan before
• You’re more motivated by progress than perfect maths
• You need to feel like you’re getting somewhere to stay focused

The Avalanche Method

The Avalanche method is for those who want to minimise the total cost of their debt.

How it works:

1. List all your debts from highest interest rate to lowest.
2. Make minimum payments on all debts except the one with the highest interest.
3. Pay as much as possible toward that high-interest debt.
4. Once it’s gone, move on to the next highest interest rate.
5. Repeat until everything is cleared.

Why people love it:

• It’s mathematically efficient
• You pay less interest overall
• It works especially well for high-interest debts like credit cards or payday loans

Good for you if:

• You’re focused on saving the most money long term
• You don’t need instant gratification to stay motivated
• You have the discipline to stick with a plan, even if the wins come slower

So… Which One’s Better?

Honestly? There’s no “best” method. The best plan is the one you’ll stick to.

If seeing progress quickly helps you stay on track, go Snowball.
If you’re laser-focused on paying the least amount of interest, go Avalanche.

And if you’re somewhere in between? That’s fine too. You can even mix the two! Start with a snowball to build momentum, then switch to avalanche when you’re in the flow.Debt can feel heavy, but with the right strategy (and a bit of consistency), it gets lighter with every step. You don’t need to be perfect, you just need to pick a path and keep moving forward.

Which one will you choose? 💸