The Snowball vs. Avalanche Method: Which is Best?

If you’re staring down a debt pile and wondering where to start, you’re not alone. Many people feel stuck with debt. The good news is that there are proven strategies. These can make repayment manageable and even empowering.

Today, we’ll explore two popular ways to pay off debt: snowball and avalanche. We’ll explore how each works, weigh their pros and cons, and help you choose the best fit for your financial journey.

Why Having a Repayment Strategy Matters

Without a clear plan, it’s easy to pay a little here, a little there — and make minimal progress.

A structured strategy gives you:

• Focus: Channel your energy effectively.
• Momentum: See meaningful progress quickly.
• Savings: Minimise how much interest you pay overall.
• Motivation: Stay encouraged when challenges arise.

Quick Insight: Getting out of debt takes time. But with a smart plan, you can reach your goal faster than you think.

What Is the Snowball Method?

The snowball method pays off debts starting with the smallest balance first. It doesn’t consider the interest rate.

How It Works:

1. List all your debts from smallest to largest balance.
2. Make minimum payments on all debts except the smallest.
3. Put every extra penny toward clearing the smallest debt.
4. After you pay off that debt, use the extra money to tackle the next smallest debt. It’s like a snowball getting bigger and faster.

Example:

• Credit Card A: £300 balance
• Credit Card B: £800 balance
• Personal Loan: £2,500 balance

Start with Card A. Once it’s wiped out, move to Card B, then the loan.

Pros of the Snowball Method:

• Quick wins build confidence and energy.
• Psychological boost from clearing debts early.
• Momentum helps you stick with the plan longer.

Cons:

• You may pay more in interest overall compared to other strategies.
• Less mathematically efficient if larger, high-interest debts are left until later.

What Is the Avalanche Method?

The avalanche method pays off debts with interest rates. You tackle the highest first, then work down to the lowest.

How It Works:

1. List your debts from highest to lowest interest rate.
2. Make minimum payments on all but the debt with the highest interest rate.
3. Put all extra money towards the most expensive debt first.
4. Once it’s cleared, move down the list.

Example:

• Credit Card A: £800 balance at 22% APR
• Credit Card B: £300 balance at 18% APR
• Personal Loan: £2,500 balance at 7% APR

Start with Card A to save the most on interest charges.

Pros of the Avalanche Method:

• Saves you the most money in interest charges over time.
• Clears “expensive” debt quicker, mathematically speaking.

Cons:

• Slower emotional rewards — it might take longer to clear the first debt.
• Requires strong discipline to stay motivated.

Snowball vs. Avalanche: Side-by-Side Comparison

Which Method Should You Choose?

There’s no one-size-fits-all answer. It depends on your personality, habits, and emotional needs.

Choose the Snowball Method if:

• You need quick wins to stay motivated.
• You find visible progress encouraging.
• Emotional satisfaction is a driving force for you.

Choose the Avalanche Method if:

• You’re focused on saving the maximum amount.
• You have strong self-discipline and patience.
• Emotional wins are less important than financial efficiency.

Reader Prompt: Are you more motivated by seeing fast progress or knowing you’re saving the most money? Your answer may reveal your ideal strategy.

Real-Life Story: Liam’s Journey

Liam, a 27-year-old barista from Manchester, faced over £9,000 spread across five credit cards and a small personal loan.

He started with the avalanche method, tackling his highest-interest debts first. However, after six months, he felt discouraged by the lack of visible progress.

What Changed?

• Liam switched to the snowball method.
• Paying off his smallest £250 balance gave him a surge of motivation.
• The emotional wins kept him going, clearing all his debts within two years.

The moral of Liam’s Story is that the best method is the one you can stick with over the long term.

Tips to Boost Success, No Matter the Method

• Automate Payments: Set up automatic payments to avoid missing due dates.
• Celebrate Milestones: Treat yourself (responsibly) when you clear a debt.
• Track Your Progress Visually: Charts, apps, spreadsheets, or even a simple whiteboard.
• Stay Flexible: Life changes. Adjust your debt plan if your circumstances do, too.
• Build an Emergency Fund: Having at least £500–£1,000 prevents new debt when surprises strike.

Common Pitfalls to Avoid

• Adding New Debt: Pause unnecessary credit card use during repayment.
• Only Making Minimum Payments: Always aim to pay extra when possible to attack the principal.
• Lack of Written Plan: Write down your strategy — clarity breeds commitment.
• Ignoring Small Wins: Every step forward deserves acknowledgement — it fuels momentum.

Frequently Asked Questions

Can I combine both methods?

Absolutely! Some people start with the snowball for fast wins, then switch to the avalanche to optimise interest savings.

Should I save money or pay off debt first?

Aim to build a small emergency fund (£500–£1,000) first, then focus heavily on debt repayment.

What if my income is unpredictable?

Base your debt plan on your guaranteed minimum income. Treat extra earnings like bonuses to supercharge debt payoff.

Conclusion: Choose Your Weapon and Attack

Both the snowball and avalanche methods are powerful tools — but remember: The best method is the one that keeps you motivated and consistent.

Ready to start?

• List your debts today.
• Choose your strategy.
• Make that first focused payment.

Every pound you pay off is a step closer to freedom, peace of mind, and financial empowerment.