Debt Avalanche vs Debt Snowball: The Honest Comparison
Avalanche saves the most money. Snowball keeps humans motivated. The best method is the one you’ll still be running in month eight.
The mechanics
Avalanche strategy: minimums everywhere, extra dollars to the highest APR first. Mathematically optimal—every dollar fights the most expensive interest in the room.
Snowball: smallest balance first. The first payoff arrives in weeks instead of months, and behavioral studies show early wins meaningfully improve completion rates. A 70%-finished snowball beats a 30%-finished avalanche in every universe.
The hybrid that wins most often
Start snowball to kill one or two small balances and build momentum, then switch to avalanche for the heavy APR debt. You buy motivation cheaply and spend the bulk of the dollars mathematically.
Either way: While paying down, stop adding. A payoff plan with new swipes on the cards is a treadmill.
Common questions
Which debts first, always?
Anything above ~15% APR—cards, personal loans. Student loans and mortgages can wait at the back of the queue.
Should I consolidate instead?
Consolidation only helps if the new rate is lower and the old cards stay at zero. Recharged cards plus a consolidation loan is the classic double-debt trap.