Debt Payoff
How To Pay Off Debt Faster: Snowball vs Avalanche
The two main debt payoff methods, with real-numbers examples — and how to pick the one you'll actually finish.
Lauren MitchellJanuary 30, 20268 min read
The 'best' debt payoff method is the one you'll stick with for 24 months. Math matters less than momentum.
The Snowball Method
Pay minimums on everything. Throw all extra cash at your smallest balance. When it's gone, roll that payment into the next smallest. Quick wins fuel motivation.
The Avalanche Method
Pay minimums on everything. Throw all extra cash at the highest-interest debt. Mathematically optimal. Saves the most money and time.
Which one wins?
| Method | Pros | Cons |
|---|---|---|
| Snowball | Fast emotional wins; high completion rate | Costs a bit more in interest |
| Avalanche | Lowest total cost | Slow first wins; higher dropout rate |
Finding extra money to throw at it
- Refinance high-interest debt to a 0% balance transfer card
- Sell one big-ticket unused item (instrument, electronics, furniture)
- Direct your next raise or tax refund 100% to debt
- Add a $200/mo side hustle for 12 months
written by
Lauren Mitchell
Senior writer · Baller Budgeting