If you’re drowning in debt, you’re not alone, the debt snowball or debt avalanche can help you. Many people struggle with multiple debts—credit cards, loans, overdrafts—and it can feel overwhelming trying to pay them all off. But the good news is, with the right strategy, you can regain control and become debt-free faster than you think.
Two of the most popular debt repayment methods are the debt snowball and the debt avalanche. Both have their benefits, but which one is best for you? That depends on your financial situation and mindset.
In this post, we’ll break down how each strategy works, the pros and cons of both, and help you decide which method will work best for your debt-free journey.
1. What is the Debt Snowball Method?
The debt snowball method focuses on paying off your smallest debt first while making minimum payments on all others. Once the smallest debt is cleared, you move on to the next smallest, and so on—like rolling a snowball that gets bigger as it moves. This method gives you a psychological boost as you feel like you are achieving something.
How It Works:
- List all your debts from smallest to largest (ignore interest rates for now).
- Pay the minimum payment on all debts except the smallest one.
- Throw as much extra money as possible at the smallest debt until it’s paid off.
- Once cleared, take the money you were paying towards that debt and apply it to the next smallest.
- Repeat until all debts are gone.
Example:
Let’s say you have the following debts:
- £500 credit card (18% interest)
- £2,000 personal loan (10% interest)
- £5,000 car loan (6% interest)
With the snowball method, you’d pay off the £500 credit card first, even though it has the highest interest rate. Once that’s cleared, you move on to the £2,000 personal loan, and then the £5,000 car loan.
Pros of the Debt Snowball Method:
✔ Quick wins – Paying off small debts fast gives you a psychological boost.
✔ Motivating – Seeing progress keeps you focused and determined.
✔ Simple to follow – No complicated interest calculations.
Cons of the Debt Snowball Method:
✖ May cost more in interest – Because you’re ignoring interest rates, you might pay more overall.
✖ Not the fastest method – Larger, high-interest debts can take longer to clear.
The debt snowball is great if you need motivation and momentum to stay on track. But if saving money is your priority, the debt avalanche might be a better fit.
2. What is the Debt Avalanche Method?
The debt avalanche method focuses on tackling debts with the highest interest rate first, which saves you the most money in the long run.
How It Works:
- List all your debts from highest to lowest interest rate.
- Pay the minimum payment on all debts except the one with the highest interest.
- Put all extra money towards the debt with the highest interest rate until it’s cleared.
- Move on to the next highest interest debt and repeat until all debts are gone.
Example:
Using the same debts as before:
- £500 credit card (18% interest)
- £2,000 personal loan (10% interest)
- £5,000 car loan (6% interest)
With the avalanche method, you’d start with the credit card because it has the highest interest rate. Once that’s paid off, you’d move on to the personal loan, then the car loan.
Pros of the Debt Avalanche Method:
✔ Saves the most money – Paying off high-interest debts first means less interest paid overall.
✔ Faster total debt payoff – You clear debts more efficiently.
Cons of the Debt Avalanche Method:
✖ Takes longer to see progress – Large high-interest debts can feel like they take forever to clear.
✖ Can be demotivating – If you don’t see quick wins, you might lose momentum.
The debt avalanche is best if you want to minimise interest and pay off debt faster overall, but it requires discipline and patience.
3. Debt Snowball vs. Debt Avalanche: A Side-by-Side Comparison
| Feature | Debt Snowball | Debt Avalanche |
|---|---|---|
| Focus | Smallest balance first | Highest interest rate first |
| Best for | Motivation & momentum | Saving money & efficiency |
| Time to debt-free | Can take longer | Usually faster |
| Interest paid | More interest over time | Less interest paid overall |
| Ease of use | Simple & easy to stick to | Requires more discipline |
4. Which Strategy is Best for You?
Both methods work, but the best one for you depends on your mindset, financial habits, and motivation.
- Choose the Debt Snowball if:
✔ You need quick wins to stay motivated.
✔ You like checking things off your list.
✔ You struggle with sticking to long-term financial plans. - Choose the Debt Avalanche if:
✔ You want to save the most money on interest.
✔ You have the discipline to stay on track, even if progress feels slow.
✔ You’re more numbers-driven than emotionally motivated.
If motivation is your biggest struggle, the debt snowball is probably the better option. If you’re financially disciplined and want to pay off debt as efficiently as possible, go for the debt avalanche.
5. Can You Combine Both Methods?
Absolutely! Some people start with the debt snowball to get quick wins, then switch to the debt avalanche to save on interest.
For example, you could pay off a couple of small debts first to build confidence, then tackle high-interest ones for maximum savings. The key is to choose a strategy that keeps you motivated and moving forward.
6. Other Tips to Pay Off Debt Faster
No matter which method you choose, here are some extra ways to speed up your debt-free journey:
- Increase Your Income: Consider a side hustle, freelancing, or selling unused items to throw extra money at your debt.
- Cut Unnecessary Expenses: Review your budget and cut back on non-essential spending like subscriptions or eating out.
- Negotiate Lower Interest Rates: Call lenders and ask for a lower rate or consider a 0% balance transfer card.
- Make Extra Payments: Even small extra payments can make a big difference over time.
Conclusion
There’s no one-size-fits-all approach to paying off debt, but choosing the right strategy can make the journey smoother and more successful.
If you thrive on quick wins and motivation, the debt snowball is a great choice. If you’re more focused on saving money and paying off debt faster, the debt avalanche will be more effective.
Whichever method you choose, the most important thing is to stick with it. Becoming debt-free is possible—you just need a plan and the determination to see it through.
So, which strategy will you choose? Let me know in the comments below!