Two Proven Paths to Debt Freedom
Both the Snowball and Avalanche methods use the same core mechanic: pay minimums on all debts, then throw every extra dollar at one target debt. The difference is which debt you target.
The Snowball Method 🧊
Target: Your smallest balance first, regardless of interest rate.
Why it works: You eliminate debts one by one quickly, creating momentum and motivation through visible early wins.
Best for: People who struggle with motivation or have many small debts.
The Avalanche Method 🌋
Target: Your highest interest rate debt first.
Why it works: You minimize total interest paid, which is mathematically optimal.
Best for: Disciplined savers who want to minimize total cost.
The Verdict: Which Saves More?
The Avalanche always saves more money in total interest — sometimes significantly. The Snowball can save time emotionally by keeping you engaged.
For most people with 2-3 debts, the difference is modest. Run both scenarios using our Debt Payoff Planner to see your exact numbers.
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