Updated: Jun 14, 2025

Paying off debt can feel overwhelming, especially when you’re juggling multiple balances with different interest rates and minimum payments. Two popular methods—the snowball and avalanche—offer structured ways to get out of debt faster and with less stress.

Why You Need a Plan for Paying Off Debt

Without a strategy, paying off debt can feel like spinning your wheels. You make minimum payments each month, but the balances barely move—especially when interest keeps adding up. A clear plan gives you direction and motivation.

Both the snowball and avalanche methods work by focusing your efforts on one debt at a time while making minimum payments on the rest. This concentrated approach builds momentum and frees up cash to tackle the next balance. The biggest difference between the two lies in how you decide which debt to pay off first.

What Is the Debt Snowball Method?

The debt snowball method is about paying off your debts from smallest to largest balance, regardless of interest rate. You list all your debts in order of balance size, pay the minimum on all except the smallest, and put any extra money toward that one.

Once the smallest debt is paid off, you move on to the next smallest, adding the payment you were making on the first debt to the second one. This process repeats until all debts are gone.

The snowball method is all about quick wins. Paying off a small debt gives you a psychological boost that helps you stay motivated. It’s especially useful if you struggle with feeling discouraged or need visible progress to stay committed.

Here’s a simple example. Imagine you have the following debts:

• Credit Card A: $300 at 18%

• Credit Card B: $1,200 at 15%

• Loan C: $5,000 at 10%

With the snowball method, you’d focus on Credit Card A first. Once that’s paid off, you’d take that payment and apply it to Credit Card B, and so on. You keep “snowballing” your payments until every balance is zero.

What Is the Debt Avalanche Method?

The avalanche method focuses on interest rates instead of balance size. You list your debts from highest to lowest interest rate, regardless of balance, and put extra money toward the one with the highest rate.

Once that debt is gone, you move to the next highest interest rate, combining payments as you go. The avalanche method saves the most money over time because it reduces how much you pay in interest.

Using the same debts from earlier, the avalanche order would be:

• Credit Card A: $300 at 18%

• Credit Card B: $1,200 at 15%

• Loan C: $5,000 at 10%

In this case, you’d still start with Credit Card A, but if the highest interest rate belonged to a larger debt, the order would be different from the snowball method.

The avalanche method is more efficient from a math standpoint. If you’re motivated by numbers and want to save as much as possible on interest, this may be the right fit for you.

Which Method Saves More Money?

In most cases, the avalanche method saves more money and pays off your debt slightly faster—assuming you stick with it. That’s because you’re attacking the costliest debt first, which reduces the total interest you pay over time.

However, the snowball method tends to work better for people who need motivation and psychological wins to stay on track. Paying off that first small balance can feel like a huge victory and give you the confidence to keep going.

There’s no wrong choice. The best method is the one you’ll stick with. Some people even combine the two—starting with the snowball to get momentum, then switching to the avalanche once they’re in the groove.

How to Choose the Right Method for You

To decide which strategy works best for your situation, ask yourself a few questions:

Do you need quick wins to stay motivated? If so, the snowball method is likely a better fit. Paying off a small balance feels good and builds momentum.

Are you focused on saving money over time? If yes, the avalanche method is more efficient and helps you pay less interest overall.

Are you disciplined and detail-oriented? The avalanche method requires sticking with a plan even when results are slower at first.

Are you feeling discouraged or overwhelmed by debt? The snowball method can make you feel more in control quickly and help build confidence.

Remember, the most important part is starting. Any plan is better than no plan, and you can always switch strategies if one isn’t working for you.

How to Get Started

Begin by listing all your debts, including balances, interest rates, and minimum payments. Whether you use a notebook, a spreadsheet, or a budgeting app, gather the full picture.

Choose your strategy—snowball or avalanche—and rank your debts accordingly. Calculate how much extra money you can put toward debt each month, even if it’s just $20 or $50. Small amounts make a difference when you’re consistent.

Make the minimum payment on all debts except your target one. Put all your extra money toward that debt until it’s gone. Then move to the next.

Keep track of your progress and celebrate each milestone. Whether it’s paying off your first credit card or watching your total debt drop below a certain number, those wins matter.

Additional Tips for Debt Payoff Success

Build a small emergency fund—around $500 to $1,000—before you start paying off debt aggressively. This helps you avoid going deeper into debt when an unexpected expense pops up.

Track your spending. Knowing where your money goes each month helps you find extra dollars to throw at debt. Free tools like EveryDollar or Mint can help.

Avoid adding new debt during your payoff journey. If possible, stop using credit cards and switch to a cash or debit system.

Stay focused on your goals. Post your debt total on your fridge or keep a visual tracker to watch your progress. This keeps your motivation high and reminds you why you’re doing the work.

Final Thoughts

Paying off debt takes time, discipline, and a solid plan. Whether you choose the snowball method for quick wins or the avalanche method for long-term savings, the key is to stay consistent and focused. Every payment brings you one step closer to financial freedom—and with a plan in place, you’ll get there faster than you think.