How to Pay Off Debt: Avalanche vs Snowball

By Garzoni Team · · Updated

To pay off debt, list every debt, keep paying the minimum on all of them, then throw every spare pound at one target debt. Pick the avalanche method (highest interest rate first) to save the most money, or the snowball method (smallest balance first) to stay motivated.

The avalanche method

Order debts by interest rate, highest first. Overpay the most expensive debt while paying minimums elsewhere. Mathematically this costs you the least in interest.

The snowball method

Order debts by balance, smallest first. Clearing a whole debt quickly gives a psychological win that keeps you going. It can cost slightly more in interest but has a higher finish rate.

Which should you choose?

If staying motivated is your challenge, snowball. If you're disciplined and want maximum savings, avalanche. The best method is the one you'll actually complete.

Avoid new debt while you repay

Pause new borrowing, keep a small emergency buffer so surprises don't push you back onto credit, and celebrate each cleared balance.

Frequently asked questions

Is the avalanche or snowball method better?

Avalanche saves the most interest; snowball is more motivating. Behaviourally, many people finish faster with the snowball method.

Should I save or pay off debt first?

Keep a small starter emergency fund first, then prioritise high-interest debt, which usually costs more than savings earn.

Related lessons

← All guides

We use cookies on this site. We need your consent to store non-essential cookies (e.g. analytics) on your device. Necessary cookies (session, login, security) are used without consent as required to provide the service. You can accept all, reject non-essential, or choose in settings.