Paying off debt doesn’t have to feel overwhelming. Two of the most popular strategies are the Debt Snowball and Debt Avalanche methods. Both work — but which one fits your financial goals better?
The snowball method focuses on paying off your smallest balance first, regardless of the interest rate. This approach builds motivation by giving you quick wins early in your debt payoff journey.
The avalanche method pays off your highest-interest debt first, saving you the most money over time. You'll tackle the most expensive debt even if it has a larger balance.
Let’s say Sarah has these debts:
Using Snowball: She pays off Credit Card A first ($500), then B, then the student loan. She feels motivated by clearing a debt quickly.
Using Avalanche: She pays off Credit Card B first (22% APR), then A, then the student loan. She saves more in interest over time, but it takes longer to clear her first debt.
If you’re motivated by quick wins and progress, the snowball method may be better. If you want to save the most money on interest, the avalanche method wins mathematically.
Ultimately, the best debt payoff method is the one you’ll stick with. Consistency matters more than perfection.
Want to build your own payoff plan? Try our free Debt Snowball Calculator to map out your monthly payments and track your progress.
For additional insights, check out Investopedia's guide on debt payoff strategies.