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Debt Snowball vs Avalanche: Which Pays Off Debt Faster?
The debt snowball and debt avalanche are two popular ways to pay off several debts. Both have you pay the minimum on every debt and put extra money on one target. The only difference is which debt you target first. Here is how they compare with real numbers, which you can check in the [Debt Payoff Calculator](/calculators/debt-payoff-calculator).
By the MoneyTools Editorial TeamLast updated 7 min readEditorial Policy
How each method works
Debt snowball
List debts from smallest balance to largest. Pay minimums on all of them and send every extra dollar to the smallest. When it is gone, roll its payment into the next smallest. The payment grows like a snowball.
Debt avalanche
List debts from highest interest rate to lowest. Pay minimums on all of them and send every extra dollar to the highest rate. When it is gone, roll its payment into the next highest rate.
Extra payment = Total monthly budget − Sum of all minimum payments
- Snowball target
- Smallest remaining balance
- Avalanche target
- Highest remaining interest rate
Worked example: 3 debts, $400 a month
Assume these debts, with minimum payments of $25, $75 and $150 (illustrative — your card issuer sets your minimums):
Worked example
Paying $400 a month toward three debts
- Debt A: $800 at 22% APR, minimum $25
- Debt B: $2,500 at 18% APR, minimum $75
- Debt C: $5,000 at 12% APR, minimum $150
- Total minimums: $250, so $400 − $250 = $150 extra each month
- Snowball order (smallest balance): A → B → C
- Avalanche order (highest rate): A → B → C — the same order
Both methods are debt-free in about 24 months and pay about $1,222 in total interest, because the smallest debt here also has the highest rate.
Side-by-side payoff table
To show when the methods differ, the second pair of columns swaps the rates so the largest debt has the highest rate ($800 at 12%, $2,500 at 18%, $5,000 at 22%), with the same balances, minimums and $400 budget.
| Snowball (your debts) | Avalanche (your debts) | Snowball (rates swapped) | Avalanche (rates swapped) | |
|---|---|---|---|---|
| Payoff order | A → B → C | A → B → C | $800 → $2,500 → $5,000 | $5,000 → $2,500 → $800 |
| First debt paid off | Month 5 | Month 5 | Month 5 | Month 21 |
| Debt-free in | ≈ 24 months | ≈ 24 months | ≈ 26 months | ≈ 26 months |
| Total interest | ≈ $1,222 | ≈ $1,222 | ≈ $2,091 | ≈ $1,871 |
In the swapped case, the avalanche saves about $220 in interest. The snowball, though, clears its first debt in month 5 instead of month 21 — a win that keeps many people motivated.
Which should you choose?
- Choose avalanche if you want to pay the least interest and can stay patient without quick wins.
- Choose snowball if you need early progress to stay on track. A plan you stick to beats a perfect plan you quit.
- Check your list: if your smallest debt also has the highest rate, the choice doesn't matter.
Tips that help with either method
- Stop adding new charges to the cards you are paying off.
- Put windfalls like tax refunds toward the target debt.
- Ask about lower rates or a balance transfer, but read the fees — see How to Pay Off Credit Card Debt Fast.
- Free up extra cash with a budget: How to Make a Budget: The 50/30/20 Rule.
Minimum payments and rates in this example are made up. Enter your real balances in the Debt Payoff Calculator.
Run your own numbers
See when you could be debt-free and how extra payments help.
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