Debt snowball vs avalanche: which should you choose?

If you owe money on more than one account, the order you pay them off in matters. Two methods dominate the advice.

1. The avalanche method

Pay the minimum on everything, then put extra money on the debt with the highest interest rate. This minimises the total interest you pay.

2. The snowball method

Pay the minimum on everything, then put extra money on the smallest balance. When it is cleared, move that payment to the next smallest. It costs a little more interest but gives quick, visible wins.

3. The honest comparison

Avalanche is cheaper on paper. Snowball is easier to stay with for many people. The best method is the one you will actually finish.

4. A hybrid is fine

Clear one tiny debt first for momentum, then switch to highest-rate first.

5. Whatever you choose, keep a record

Track each balance monthly. Seeing the numbers fall makes a long payoff far easier to continue.