Debt Snowball vs. Debt Avalanche
See which debt gets your extra money first.
Both plans work the same way. You pay the minimum on every debt. Then you send all your extra money to one debt. The only difference is which debt comes first.
Snowball pays off your smallest balance first. Avalanche pays off your highest interest rate first. Avalanche usually costs less. Snowball gives you a win sooner. Pick the one you will keep doing.
Key differences
| Factor | Debt avalanche | Debt snowball |
|---|---|---|
| Extra payment goes to | Highest interest rate | Smallest balance |
| First paid-off account | May take longer to reach | May come sooner |
| Interest cost | Usually lower with the same total payment and comparable terms | May be higher if higher-rate debt waits |
| After a debt is paid off | Keep the same total payment going; target the next-highest rate | Keep the same total payment going; target the next-smallest balance |
When to choose each
Pay the minimum on every debt. Put extra money toward the debt with the highest interest rate. When it’s paid off, move that payment to the debt with the next-highest rate.
Usually costs less in interest when you keep the same total payment going and rates and terms stay comparable
Focuses extra money on the debt charging the most interest
Your first paid-off account may take longer to reach
You can stick with either plan and want to pay less interest.
Pay the minimum on every debt. Put extra money toward the smallest balance. When it’s paid off, move that payment to the next-smallest balance.
A small balance may be paid off sooner
An early win may help you keep going
Higher-rate debt may keep adding interest while you pay smaller balances first
Paying off an account does not create new money for debt payments
An early paid-off account will help you stick with your plan.
A rate that is about to change can change which debt costs the most. So can an offer that is about to end, and so can fees. Neither plan promises a payoff date, savings, or a better credit score.
Common questions
How do I choose my first debt?+
List each debt’s balance, interest rate, and minimum payment. Check whether any rate will change soon. Pay every minimum, then put extra money toward the highest-rate debt for avalanche or the smallest balance for snowball.
What happens after I pay off a debt?+
Move the amount you were paying on it to your next target. Keep the same total amount going toward debt if your budget allows. Paying off one account does not create new money.
Can I switch from snowball to avalanche later?+
Yes. You can change which debt gets your extra payment. Keep making the minimum payment on every other debt, and check for any payment rules before you switch.
Which one saves more money?+
Avalanche usually saves more interest, because you pay down the costliest debt first.