Compare the snowball vs. avalanche method, with an interactive calculator
Being in debt can feel overwhelming. It adds stress to your daily life, limits your options, and makes it harder to reach your financial goals. The good news is that with a clear plan and consistent effort, you can get out of debt faster than you think.
In this guide, we’ll go over two popular strategies for paying off debt: the snowball method and the avalanche method. We’ll explain how each one works, compare their pros and cons, and show you how to choose the one that fits you best. We’ve also included a link to a free interactive calculator to help you build your own payoff plan.
Why You Need a Debt Payoff Strategy
Without a strategy, it’s easy to make only the minimum payments and stay in debt for years. A smart plan gives you direction, keeps you motivated, and helps you save money on interest.
Two of the most popular strategies are:
- The Snowball Method: Focuses on quick wins
- The Avalanche Method: Focuses on saving money on interest
Let’s break them down.
The Snowball Method
How it works:
- List all your debts from the smallest balance to the largest (ignore interest rates for now).
- Make minimum payments on all debts except the smallest.
- Put any extra money toward paying off the smallest debt first.
- Once that debt is paid, roll the payment into the next smallest debt, and so on.
Example:
- Credit Card A: $500
- Credit Card B: $1,200
- Personal Loan: $3,000
You’d pay off Credit Card A first, then move to B, then the loan.
Why it works:
Paying off small debts quickly gives you a sense of progress and motivation to keep going. It’s great if you need emotional wins to stay on track.
Best for:
People who want to stay motivated by seeing quick results.
The Avalanche Method
How it works:
- List all your debts from highest interest rate to lowest.
- Make minimum payments on all debts.
- Put extra money toward the debt with the highest interest rate first.
- Once that debt is paid, move on to the next highest rate.
Example:
- Credit Card A: $1,500 at 22% interest
- Credit Card B: $1,000 at 18% interest
- Loan: $3,000 at 8% interest
You’d start with Credit Card A, then B, then the loan.
Why it works:
This method saves you the most money in the long run because you reduce high-interest balances first.
Best for:
People who want to minimize the total amount they pay over time and don’t mind waiting longer for a «win.»
Which One Should You Choose?
There’s no one-size-fits-all answer. It depends on your personality, goals, and how motivated you feel.
Here’s a simple guide:
| You want… | Choose… |
|---|---|
| Quick wins and motivation | Snowball Method |
| To pay less interest overall | Avalanche Method |
| A mix of both | Start with one, then switch |
The most important thing is to start and stick with the method that keeps you going.
Make It Easier: Use an Interactive Calculator
To help you compare both methods and build a payoff plan that fits your situation, try our free interactive debt calculator.
What it does:
- Helps you enter all your debts, balances, and interest rates
- Compares payoff timelines for both snowball and avalanche
- Shows how much interest you’ll pay with each method
- Lets you adjust your monthly payment and see results instantly
Try it here:
👉 [Use the Debt Payoff Calculator] (Insert link to calculator)
Extra Tips to Speed Up Debt Payoff
Once you’ve picked your method, here are a few ways to accelerate the process:
- Cut unnecessary expenses and put that money toward your debt.
- Sell unused items around your home for extra cash.
- Use bonuses, tax refunds, or side income to make extra payments.
- Avoid new debt—don’t add more while you’re trying to pay it off.
Even small extra payments make a big difference over time.
A Quick Success Story
David had $7,500 spread across three credit cards. He used the snowball method to start with his smallest debt ($600) while making minimum payments on the others. Every time he paid off one card, he applied that amount to the next. In less than 18 months, he was completely debt-free—without taking on any new loans or cutting out all his fun spending.
The key? A plan and consistency.
Final Thoughts
Debt can feel like a mountain, but every step you take brings you closer to the top. Whether you choose the snowball method for motivation or the avalanche method to save on interest, the most important thing is to start and keep going. Progress adds up.
If you’re not sure where to begin, use our free calculator and build a plan today. The sooner you start, the sooner you’ll be debt-free.