The debt snowball and debt avalanche are the two most popular ways to pay off several debts. Both pay the minimum on every debt and put extra money on one target at a time. They only differ in which debt gets the extra first:
- Snowball: smallest balance first, for quick wins.
- Avalanche: highest interest rate first, to pay less overall.
When a debt is cleared, its payment rolls on to the next one, so the amount you're throwing at your target keeps growing. Here's how the two compare on the same set of debts.
The debts
| Debt | Balance | Interest rate | Minimum |
|---|---|---|---|
| Store card | £600 | 19.9% | £25 |
| Personal loan | £3,000 | 7.9% | £120 |
| Credit card | £4,500 | 29.9% | £135 |
| Total | £8,100 | £280 |
On minimums alone, this takes 3 years 8 months and costs about £4,110 in interest. Now add £200 a month on top.
The order each method uses
- Snowball: store card (£600) → personal loan (£3,000) → credit card (£4,500).
- Avalanche: credit card (29.9%) → store card (19.9%) → personal loan (7.9%).
The results
| Snowball | Avalanche | |
|---|---|---|
| First debt cleared | Month 3 (store card) | Month 17 (credit card) |
| Second debt cleared | Month 11 (loan) | Month 18 (store card) |
| Debt-free | Month 21 | Month 20 |
| Interest paid | about £1,940 | about £1,440 |
Both methods are a big improvement on minimums only, cutting nearly two years and over £2,000 in interest. Between them:
- Avalanche saves about £500 and finishes a month sooner, because the 29.9% card stops growing early.
- Snowball clears the first debt in month 3 and two of three by month 11. With avalanche you wait 17 months for the first one.
Put your own debts into the free payoff calculator to compare both methods on your numbers.
Which should you choose?
If you'll stick with the plan either way, avalanche costs less, and the gap grows when your expensive debt is also your biggest. If an early win will keep you motivated, snowball gives you one quickly, and the extra cost is often modest. The worst choice is the plan you give up on.
Sometimes there's no trade-off at all. If your smallest debt also has your highest rate, both methods pick the same order and give the same result.
Try it yourself
- Debt snowball calculator and debt avalanche calculator for a single method.
- Payoff calculator to compare both side by side.
- Free debt snowball spreadsheet if you'd rather track it in Excel or Google Sheets.
Example assumes fixed rates with monthly interest, fixed minimums, £200 extra every month, cleared minimums rolled on to the next debt, and no new borrowing. This guide is general information, not financial advice.