The two methods
Avalanche
Pay the minimum on everything. Put every extra dollar toward the debt with the highest interest rate. When it's gone, roll that whole payment into the next-highest rate.
Best for: saving the most money.
Snowball
Pay the minimum on everything. Put every extra dollar toward the smallest balance. When it's gone, roll that payment into the next-smallest.
Best for: staying motivated with fast wins.
A quick example
| Debt | Balance | APR | Avalanche order | Snowball order |
|---|---|---|---|---|
| Store card | $900 | 27% | 1 | 1 |
| Card A | $6,500 | 24% | 2 | 4 |
| Card B | $4,200 | 19% | 3 | 3 |
| Medical bill | $1,800 | 0% | 4 | 2 |
Avalanche pays off Card A second because of its 24% rate. Snowball knocks out the small medical bill second for a quick win. The difference in total interest depends on your rates and how much extra you can pay. Compare both on your own numbers with the snowball vs. avalanche calculator.
Make either method work better
- Find the extra money first. The budget builder shows what's really left each month.
- Ask your card issuers for a lower rate. One phone call sometimes works, especially if you've paid on time.
- Stack it with a 0% balance transfer for your highest-rate card if your credit qualifies.
- Automate the minimums so a missed payment doesn't undo your progress.
- Keep a small emergency fund, even a few hundred dollars, so a surprise bill doesn't go on a card.
When DIY isn't enough
If minimums already eat most of your budget, or the balances aren't going down, the math may not work on your own. A free session with a nonprofit credit counselor can tell you whether a plan with lower rates would get you there faster.
Common question
Which is better, debt snowball or debt avalanche?
The avalanche method, paying the highest interest rate first, always saves the most interest. The snowball method, paying the smallest balance first, costs a bit more but gives quick wins that help many people stay motivated. The best method is the one you'll stick with.
Run your numbers
See your payoff date and total interest with each method.
Snowball vs. avalanche calculator