Pay Off Debt Faster — Avalanche vs Snowball

Avalanche vs Snowball — Which Should You Use?

Both methods use the same core strategy: pay minimums on all debts, then throw all extra money at one target debt. The difference is which debt you target first.

Avalanche Method

Target the debt with the highest interest rate first. Once it's paid off, roll that payment onto the next-highest-rate debt. This method minimizes total interest paid and gets you debt-free the fastest in mathematical terms. If you're motivated by numbers and long-term optimization, avalanche is the better choice.

Snowball Method

Target the debt with the smallest balance first. You eliminate debts faster — the number of debts drops quickly — which provides psychological wins and momentum. Research by Harvard Business Review found that the snowball method leads to higher debt elimination rates in practice, even if it costs slightly more in interest. If you need motivation to stay on track, snowball is often more effective in the real world.

The Honest Answer

The best method is the one you stick with. For most people with similar-rate debts, the difference between avalanche and snowball is small. The extra payment amount matters far more than which method you choose — even an extra $100/month can cut years off your debt-free date.

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