The Snowball vs. Avalanche Method – Which Debt Payoff Strategy Works Best?

 Paying off debt can feel overwhelming, but choosing the right strategy can make all the difference. Two popular methods—the snowball and avalanche approaches—offer structured ways to tackle debt, each with unique benefits.

1. The Snowball Method: Quick Wins for Motivation

This method, championed by financial experts like Dave Ramsey, focuses on paying off the smallest debts first while making minimum payments on others. Once the smallest debt is cleared, you roll the payment amount into the next smallest balance, creating a "snowball" effect.

Pros: Provides psychological wins, boosting motivation  

Cons: May cost more in interest over time since high-rate debts aren’t prioritized .

  The Avalanche Method: Save on Interest

Here, you target debts with the highest interest rates first, minimizing long-term costs.

Pros: Saves money by reducing interest accumulation  

Cons: Progress may feel slower if large balances have high rates  

Which One Should You Choose?

Snowball works best if you need quick wins to stay motivated.

Avalanche is ideal if saving money is your top priority.

For further reading on financial discipline, check out The Debt-Free Blueprint here.