Debt Payoff Deep Dive — Avalanche vs Snowball (Which One Wins for You?)
The big idea: results come from behavior + math
Both Avalanche (highest interest first) and Snowball (smallest balance first) can work. The math says Avalanche saves the most interest. The behavior science says Snowball wins more often because early wins keep you going. The “best” method is the one you’ll stick with for 6–18 months.
This guide helps you pick the right method for your psychology and your balances. Then it hands you a simple 90‑day plan to make the first large dent.
Avalanche vs Snowball (quick compare)
Avalanche
- Order by APR, pay minimums on all, and throw extra at the highest APR
- Pros: lowest interest paid; best for high APR cards/loans
- Cons: slower early wins if your highest APR also has a big balance
Snowball
- Order by smallest balance, pay minimums on all, and throw extra at the smallest
- Pros: quick early payoff → momentum and motivation
- Cons: may cost a bit more in interest vs Avalanche
Which should you choose?
- If you need early wins to stay consistent → Snowball
- If you’re motivated by saving interest and can grind → Avalanche
- If your highest APR balances are also small → Avalanche = Snowball (easy choice)
Pro tip: start with Snowball for 60–90 days to build momentum, then switch to Avalanche when you’re “in motion.”
Step 1: Build your payoff list (template)
Create a simple table in a sheet:
| Lender | Balance | APR | Minimum | Order |
|---|---|---|---|---|
| Card A | $3,000 | 24% | $75 | 1 |
| Card B | $1,200 | 19% | $35 | 2 |
| Loan C | $4,500 | 9% | $120 | 3 |
Sort by APR (Avalanche) or Balance (Snowball). Pay minimums on all. Throw every extra dollar at the top item. When a balance closes, the snowball (your extra payment amount) rolls to the next.
Step 2: Find extra dollars (without misery)
- Cancel or pause 1–2 subscriptions you don’t love
- Trim eating out by 10–15% (cook 2 meals/week at home)
- Sell 1–2 items (old phone, monitor, bike) for a quick $100–$300
- Ask for a temporary rate reduction or 0% balance transfer (be careful with fees)
Aim for an extra $150–$300/month to throw at the top balance. That’s where the magic happens.
Step 3: 90‑day execution plan
Month 1 — list debts, pick method, find extra $150–$300, automate minimums + extra to the top balance. Build a visual tracker.
Month 2 — keep automation. Add one extra payment from a weekend gig or selling a mid‑value item ($100–$200).
Month 3 — re‑rank your list (a payoff might change your order). Celebrate the first major win.
After the first payoff (don’t stop!)
Roll the previous extra plus the old minimum into the next debt. Your payment snowball gets bigger with each payoff.
Protect your progress
- Keep balances low with autopay in full on daily‑driver cards
- Avoid opening new accounts unless they materially help (e.g., 0% BT to consolidate)
- Put a small buffer in savings to avoid new debt for surprises
FAQs
Isn’t Avalanche always better?
On paper, yes. In real life, Snowball’s early wins keep people going. If Avalanche feels punishing, switch.
What about debt consolidation loans?
They can help if they truly lower your interest and you don’t rack up new balances. Beware origination fees.
Should I close paid‑off cards?
Usually no—older cards help your credit age. Keep them open with occasional small charges.
Your action today
Make the table, pick a method, and automate the first extra payment. Momentum beats perfect math. In 90 days, you’ll feel the difference.