Answer
Debt snowball vs avalanche: which is better?
Avalanche (highest interest rate first) always costs the same or less: on our four-debt example it saves $349 in interest. Snowball (smallest balance first) pays off the first debt sooner, which keeps many people motivated.
Open the debt payoff calculator
The example
| Snowball | Avalanche | |
|---|---|---|
| Total interest | $4,176 | $3,827 |
| Debt-free in | 2 years, 9 months | 2 years, 8 months |
| First debt gone | month 5 (Medical bill) | month 11 (Store card) |
| Order | Medical bill → Store card → Visa → Car loan | Store card → Visa → Car loan → Medical bill |
Debts: medical bill $1,200 at 0%, store card $2,500 at 27%, Visa $7,000 at 22% and car loan $9,500 at 7%, paying the minimums plus $200 ($760 a month).
When snowball makes sense
If you have several small balances, or you’ve tried and stalled before, early wins can matter more than a few hundred dollars of interest. If the highest-rate debt is also the smallest, both methods are the same.
More questions
Can I mix the two?
Yes: clear one tiny balance for a quick win, then switch to highest-rate-first.
Does the extra amount matter more than the method?
Usually yes: adding even $50–$100 a month shortens payoff more than switching method.
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