The debt snowball vs avalanche- which is the fastest way to pay off debt? The answer might surprise you!
The long debated topic- the debt snowball vs avalanche. Both are popular debt payoff methods—but which one actually works faster? The answer will surprise you! If you're in debt, you NEED to know this.
In this post, I will go over what exactly the debt snowball method is, what the avalanche method is, and which one is the fastest way to pay off your debt. I also included a debt snowball calculator and free debt snowball worksheet! I'll also explain which method I used to pay off over $150,000 in debt and why!
This post is all about debt snowball vs avalanche.
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1. The Debt Snowball Method Explained
What exactly is the debt snowball method? The debt snowball method, popularized by a well-known financial educator, is a method to pay off your debt. It is one of two popular debt payoff plans, the second being the Avalanche method (explained later in this article). So what exactly does this debt payoff method entail and where do snowballs come in?
This debt payoff method is unique (and controversial) because it involves paying off the smallest debt first. The debt snowball method does not take into account interest rate, merely the total amount owed.
For example, if you have a $1,000 credit card debt at 22% interest and a $500 personal loan at 1% interest, according to the debt snowball method, you'd pay the personal loan first! You might be thinking - What on earth? This is mathematical nonsense! and you'd be right! You continue to make minimum payments on all debts until the smallest one is gone. Then, once the littlest debt is paid off, you move onto the next largest debt. Each time, your minimum payment rolls over to contribute to the next largest debt, hence the snowball metaphor.
Now let's compare it to the second debt payoff method - the Avalanche.
2. The Avalanche Method Explained
Meet the debt snowballs feared rival - the avalanche! Just like the debt snowball method, the avalanche is another debt payoff method. Now, how are they different?
Well, the avalanche method, unlike the debt snowball method, involves listing your debts NOT from smallest to largest amount like the debt snowball method does, but from the largest to smallest interest rate. That's right - the total debt amount is irrelevant in the avalanche method. Instead, you will pay off the debt with the highest interest rate first.
For example, if you had a $50,000 car loan at 7% interest and a $1,000 medical bill at 4% interest, you'd pay the car loan off first.
Now, for the million dollar question - which one is best? The answer might surprise you!
3. The Debt Snowball vs Avalanche
Now that we've explained both the debt snowball method and the avalanche method, along with their key differences, we want to know: which one is the best method for paying off debt?
It's Buddy the Elf, the snowball king, vs. Mulan, the avalanche queen! Who will win?
Let's first start with accepting the premise that the best method for paying off debt is the one that gets us out of debt the fastest. Agreed? Okay, now that that's settled...
The avalanche method follows math logic by paying the highest interest debt first. This makes sense because by targeting the highest interest debt, you'll save on interest and therefore get out of debt faster. Right? WRONG. Research shows that the avalanche method is the SLOWER of the two methods for paying off debt (cue gasp!).
How could this be? Well, it comes down to something I always say - Debt is a mental problem not a math problem. To get out of debt, we have to harness the power of psychology! And this is exactly what the debt snowball method does. After all, if we were doing math, we wouldn't be in debt now, would we?
The debt snowball method has been proven time and again to be the fastest way to pay off debt.
But, how could this be when you're paying more in interest? Again, it's all about your mindset and using psychology to your advantage. The debt snowball method works better than the avalanche method because it uses the power of quick wins. You are FAR more likely to continue with your debt free journey if you see progress, and that's exactly what the debt snowball method does. With the avalanche method, it could be YEARS before you pay off a debt in full, and research shows that with no wins to show for your efforts, you're much more likely to quit altogether.
The truth is, once you're committed to a debt free journey, a couple months difference in interest will not make a difference for you financially. Certainly not as much as staying in debt would (a big risk with the avalanche method as the chance of quitting is so high!).
Now that we've established that the debt snowball method is superior, let's learn HOW to use it! This is the exact method I used to pay off over $150,000 in student loans, and I had insane success! I was able to pay off all my debt in just 16 months!
4. How to Use the Debt Snowball Method
Step 1: Get out a sheet of paper or an Excel sheet. Or use this free debt snowball printable!
Step 2: Next, list your (non-mortgage) debts from smallest to largest in one column. I know it's hard, but don't you dare look at those interest rates! We don't care! Simply list the debts from smallest to largest.
Step 3: In another column, list the minimum payments for each debt.
Step 4: Attack the smallest debt with a vengeance! Continue making minimum payments on all the other debts. Here are my top strategies to pay off debt with a low income.
Step 5: Track your progress by crossing off each debt as you pay it off. Doesn't that feel amazing? I know it does!
Step 6: Use a debt snowball calculator to estimate your debt-free date! Mark it on your calendar!
Congratulations! You're on your way to being debt free!
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FAQs about Debt Snowball vs. Avalanche:
The debt avalanche is mathematically faster in theory, but research shows most people quit before seeing results. The debt snowball—because it gives you quick wins—is proven to help people stay motivated and pay off debt faster in real life.
Yes. Even if you have high-interest debt, the debt snowball works because it keeps you consistent. A few extra months of interest is nothing compared to the cost of staying in debt for years because you lose motivation and stop.
Choose the snowball if you want quick wins, motivation, and psychological momentum. Choose the avalanche only if you’re extremely disciplined and won’t lose steam even if it takes years to see a payoff.
Absolutely. Many people start with the avalanche because it “sounds smarter” and then switch to the snowball once they realize they need faster progress and emotional wins to stay on track.
It depends on your income, expenses, and total debt, but the snowball method almost always speeds up your payoff timeline because you stay consistent. I personally used the debt snowball to pay off $150,000 in 16 months.
No. The debt snowball only includes non-mortgage debt such as credit cards, personal loans, student loans, and car loans. Your mortgage should be paid separately and is not part of the debt snowball.
