Snowball vs Avalanche: Which Saves More?
Both methods work. Here's the honest comparison:
- Snowball: Pay smallest balance first → faster wins → better motivation → slightly more interest paid
- Avalanche: Pay highest rate first → less total interest → slower early progress → requires more discipline
- Best method: Whichever one you actually stick to
How the Snowball Works Step-by-Step
- List all debts from smallest to largest balance
- Pay minimum payments on all debts
- Put every extra dollar toward the smallest debt
- When smallest is paid off, roll that payment to the next smallest
- Repeat until debt-free
Example: 3 Debts Paid Off
| Debt | Balance | Rate | Snowball Order |
|---|---|---|---|
| Store card | $800 | 24% | 1st (smallest) |
| Personal loan | $4,500 | 12% | 2nd |
| Car loan | $12,000 | 6% | 3rd (largest) |
Frequently Asked Questions
Does the debt snowball really work?
Yes — multiple studies show the snowball method leads to higher debt payoff completion rates than the avalanche method, because early wins build momentum and commitment.
How much faster does the snowball method pay off debt?
The snowball and avalanche methods often result in similar payoff timelines. The snowball may pay slightly more interest, but the difference is usually small compared to the motivational benefits.
What if I have a debt with 0% interest?
Still include it in the snowball. Pay it off in order by balance. Once it's gone, that freed-up minimum payment accelerates everything else.
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