DEBT GUIDE
Debt snowball vs. debt avalanche
Both methods focus extra money on one balance while maintaining required payments on the others.
Debt snowball
The snowball method targets the smallest balance first, regardless of interest rate. It can create visible progress quickly, which may help motivation.
Debt avalanche
The avalanche method targets the highest interest rate first. When followed consistently, it generally minimizes interest compared with paying lower-rate balances first.
Which one should you use?
Choose the approach you are most likely to maintain. The mathematical advantage of an avalanche does not help if the plan is abandoned. The behavioral advantage of a snowball may be worth some additional interest for people who need early wins.