Debt Snowball vs. Avalanche: Which Payoff Method is Faster?
Snowball vs. Avalanche: The Ultimate Debt Showdown
You have three credit cards maxed out. You are drowning in interest. You want out.
Two famous strategies dominate the debt-free world: The Debt Snowball (popularized by Dave Ramsey) and The Debt Avalanche (preferred by mathematicians).
Which one gets you debt-free faster? Let's run the numbers.
👉 Calculate Your Debt-Free Date Now → See total interest saved • Visual Progress Bar • Debt Spiral Warning
Strategy 1: The Debt Snowball ❄️
Focus: Psychology & Momentum
How it works:
- ●List debts from Smallest Balance to Largest Balance.
- ●Ignore the interest rates.
- ●Pay minimums on everything, but throw all extra money at the smallest debt.
- ●Once the small one is gone, take that payment and roll it into the next one.
Why it works: Human brains love "wins." Eliminating a $500 debt in month 1 feels amazing. That dopamine hit keeps you motivated to attack the $5,000 debt next.
Strategy 2: The Debt Avalanche 🏔️
Focus: Math & Efficiency
How it works:
- ●List debts from Highest Interest Rate to Lowest Interest Rate.
- ●Ignore the balances.
- ●Attack the card with the 25% APR first, even if it's your biggest loan.
Why it works: Mathematically, high-interest debt is "expensive" debt. Killing the 25% APR card first saves you hundreds (or thousands) in interest charges over time.
The Comparison: A Real Example
Imagine you have $500 extra per month to pay off this debt:
- ●Card A: $1,000 Balance (15% APR)
- ●Card B: $5,000 Balance (25% APR)
Scenario A: Snowball Method
You pay off Card A ($1k) first because it's smaller.
- ●Result: You get a "quick win" in 2 months.
- ●Cost: While you focused on Card A, Card B (at 25% APR) kept growing fast.
Scenario B: Avalanche Method
You pay off Card B ($5k) first because it has the killer 25% rate.
- ●Result: It takes 10 months to see your first card hit $0 (harder to stay motivated).
- ●Cost: You save ~$200 in total interest compared to the Snowball method.
The "Minimum Payment" Trap ⚠️
Our calculator has a feature called "Debt Spiral Warning."
If your credit card balance is $5,000 at 20% APR, the interest charge is $83/month.
- ●If your minimum payment is $80, your balance actually grows every month.
- ●If your minimum payment is $90, it will take you 28 years to pay it off.
The Fix: You must pay significantly more than the interest charge to make progress.
Which Method Should You Choose?
- ●Choose Snowball if: You have trouble sticking to a budget or feel overwhelmed. You need to see progress now to keep going.
- ●Choose Avalanche if: You are disciplined, hate wasting money on interest, and don't mind waiting for the big payoff.
Start Your Journey
Don't guess. Plug your numbers into our tool. We will show you:
- ●Your exact Debt Free Date.
- ●Total Interest Paid.
- ●How much time you save by adding just $50/month.