Debt Snowball vs Debt Avalanche: How to Choose and Start Today
If you’ve been stuck in “research mode” (watching videos, reading posts, making spreadsheets you don’t follow), this is your exit ramp. You only need one decision:
Do you want the method that saves the most interest, or the method you’re most likely to stick to?
Both work. The best one is the one you’ll execute every month until you’re done.
Quick summary: pick this, not that
Choose Debt Avalanche if:
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You can stay consistent without needing quick wins
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Your highest-interest debt is big (credit cards / store cards)
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You want the lowest total interest paid
Choose Debt Snowball if:
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You feel overwhelmed and need momentum fast
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You have several small balances
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Motivation is currently the bottleneck, not maths
Choose Hybrid if:
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You want a fast first win and lower interest overall
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You’re restarting after falling off your plan
Hybrid rule: snowball until the first debt is gone, then switch to avalanche.
What the methods actually are (simple)
Debt Snowball
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List debts by smallest balance → largest balance
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Pay minimums on everything
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Put all extra money toward the smallest balance
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When it’s paid off, roll that payment into the next debt
Result: faster early wins, strong momentum.
Debt Avalanche
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List debts by highest interest rate (APR) → lowest
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Pay minimums on everything
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Put all extra money toward the highest APR
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Roll payments as you clear debts
Result: usually less interest paid, often fastest mathematically.
The 5-minute decision guide (do this now)
Answer these in order:
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If you don’t change anything, will you still follow the plan in 3 months?
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If no → pick Snowball (or Hybrid)
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If yes → go to #2
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Is your highest APR debt at least ~10% higher than your lowest?
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If yes → Avalanche (the savings will be meaningful)
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If no → either works; go to #3
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Do you have 2+ debts under one month of your extra payment?
(Example: you can pay £250 extra, and you have debts under ~£250–£500.)
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If yes → Snowball (quick wins stack)
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If no → Avalanche
If you’re still stuck: Hybrid. Get one early win, then optimize.
Setup: the exact steps (15 minutes)
Step 1: List your debts (no judgment, just numbers)
For each debt, write:
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Balance
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APR / interest rate
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Minimum payment
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Due date
Step 2: Pick your method (commit for 90 days)
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Snowball, Avalanche, or Hybrid
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Do not re-decide every week. Decision fatigue kills progress.
Step 3: Choose your “extra payment” number
This is the money above minimums you’ll throw at the target debt.
Start small if you need to: £25–£100 extra is enough to create momentum. Consistency beats intensity.
Step 4: Automate minimum payments
Your goal is to eliminate “oops I forgot.”
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Set autopay for minimums on all debts
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Set a calendar reminder for a monthly 10-minute review
Step 5: Create one “Debt Attack” transfer
On payday (or the day after):
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Transfer your extra payment into a separate “Debt Attack” pot/account
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Make the target debt payment from there
This prevents the money “disappearing” into spending.
Step 6: Roll payments every time a debt dies
When a debt hits £0:
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Keep paying the same total amount
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Just redirect it to the next target
That’s how the plan accelerates.
Example: snowball vs avalanche (real difference)
Example only. Same debts, same monthly budget, different targeting.
Debts
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Card A: £900 at 12% APR, minimum £30
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Card B: £2,500 at 27% APR, minimum £65
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Loan: £7,000 at 6% APR, minimum £210
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Extra payment available: £250/month (on top of minimums)
Results
Snowball order (smallest balance first): Card A → Card B → Loan
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First debt cleared: Month 4
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Total payoff time: 21 months
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Total interest paid: ~£927
Avalanche order (highest APR first): Card B → Card A → Loan
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First debt cleared: Month 9
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Total payoff time: 21 months
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Total interest paid: ~£833
What this means
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Avalanche saved ~£93 in interest in this example.
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Snowball gave a win 5 months earlier.
If early wins keep you consistent, snowball can beat avalanche in real life—because the “best” plan is the one you don’t quit.
Common mistakes (avoid these)
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Switching methods every month (kills momentum)
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Not automating minimums (missed payments = fees + stress)
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Using “extra payment” money for random spending (fix with a separate pot)
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Ignoring interest rate on huge balances forever (use Hybrid if needed)
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Trying to do everything at once (budget overhaul + side hustle + no-spend + meal plan)
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No buffer at all (a tiny emergency fund prevents relapse)
Start today checklist (copy/paste)
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List all debts: balance, APR, minimum, due date
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Pick method: Snowball / Avalanche / Hybrid
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Choose extra payment: £_____ per month
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Set autopay minimums for every debt
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Create “Debt Attack” pot/account
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Schedule a weekly 10-minute money check-in
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Make the first extra payment within 24 hours
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Track one metric: total debt balance down each month
FAQ
Should I build an emergency fund while paying off debt?
Yes—small and simple. A starter buffer (even £300–£1,000, depending on your situation) prevents you going back to cards for car repairs and life surprises. Then keep the main focus on debt.
Should I close credit cards as I pay them off?
Not automatically. It depends on spending habits and fees. If a card tempts you into relapse, closing or freezing it can be worth it. If you’re stable and it has no annual fee, keeping it open may help your credit profile. The priority is staying debt-free.
Should I consolidate instead?
Consolidation can help if it lowers interest and you don’t run balances back up. If consolidation gives you “room to breathe” but doesn’t change behaviour, it becomes a reset button—not a solution.
What if I’m missing payments or can’t cover minimums?
Pause the payoff strategy and stabilize first:
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Prioritize essentials (housing, utilities, food, transport)
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Contact creditors early
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Seek free, reputable debt advice in your country if needed
The best plan is the one that keeps you current and reduces stress.
Snowball or avalanche for couples?
Use one shared method, one shared tracker, one weekly check-in. If motivation is uneven, snowball often keeps both people engaged.
