Debt Snowball vs. Avalanche: Which One is Right for You?

If you're drowning in credit cards, student loans, and car payments, you need a plan. Randomly throwing money at different bills is not a strategy. The two most effective strategies are the Debt Snowball and the Debt Avalanche.

But which one is better? It depends on your personality.

Feature	❄️ Snowball	🏔️ Avalanche
Order	Smallest balance to largest	Highest interest rate to lowest
Main Benefit	Psychological motivation (quick wins)	Mathematical optimization (less interest)
Who it's for	People who need motivation to keep going	People who are disciplined by numbers

1. The Debt Snowball

Popularized by Dave Ramsey, this method ignores interest rates. You list your debts from smallest balance to largest. You pay minimums on everything else, but attack the smallest debt with a vengeance.

Why it works: When you pay off a $500 credit card in month one, you feel a surge of victory. That dopamine hit keeps you motivated to attack the next debt ($1,200), and then the next.

2. The Debt Avalanche

This is the "math nerd" approach. You list debts from highest interest rate (APR) to lowest. You attack the 29% credit card first, regardless of balance.

Why it works: Mathematically, this saves you the most money over time because you eliminate the most expensive debt first.

Which Should You Choose?

If you have a history of starting budgets and quitting, choose the Snowball. The behavior modification is more valuable than the interest savings.

If you are highly disciplined and hate giving money to banks, choose the Avalanche.