Debt snowball vs. avalanche: which should you use?
Both methods pay every minimum and put your extra money on one debt at a time. The only difference is which debt goes first. Here's a worked example with real numbers, so you can see what each one costs.
Written and checked by the Bill & Debt Snowball team. Every figure is worked out with the app's own payoff math. Last checked October 23, 2026. How we check
How each one works
The snowball puts your extra money on the smallest balance first. When it's paid off, its payment rolls onto the next smallest, so each payment grows as you go.
The avalanche puts your extra money on the highest interest rate first. Every extra dollar goes where interest costs you the most, so it usually costs a little less interest overall.
A worked example
Three debts, and $200.00 a month on top of the minimums ($655.00 a month in total):
| Debt | Balance | Rate | Minimum |
|---|---|---|---|
| Medical bill | $450.00 | 0% | $50.00 |
| Credit card | $3,100.00 | 24.99% | $95.00 |
| Car loan | $8,400.00 | 6.5% | $310.00 |
| Method | Debt-free in | Total interest | First debt paid off |
|---|---|---|---|
| Snowball | 20 months | $1,041.14 | Medical bill, month 2 |
| Avalanche | 20 months | $1,000.61 | Medical bill, month 9 |
The avalanche saves $40.53 in interest and finishes the same month. The snowball pays off its first debt in month 2; the avalanche's first payoff comes in month 9. Adding $100 a month to the snowball would save $180.54 in interest.
Which to pick
The snowball suits you if…
you've started before and stalled, or you have several small balances. Seeing one disappear in a month or two can be worth a little interest.
The avalanche suits you if…
one debt has a much higher rate than the rest, or you're sure you'll stick with it without an early win.
Either way, the extra payment matters more than the method. In the example above, adding $100 a month saves more than switching methods does. Try it with your own numbers in the debt snowball calculator.