Both methods pay minimums on everything and aim all extra money at one target debt. Snowball targets the smallest balance for momentum; avalanche targets the highest rate for math.
Side by side
| Snowball | Avalanche | |
|---|---|---|
| Payoff order | Smallest balance first | Highest APR first |
| Optimizes for | Motivation and quick wins | Total interest paid |
| Cost difference | Pays somewhat more interest | Mathematically cheapest |
| Works best for | Many small scattered debts | A few large high-APR debts |
| Behavioral evidence | Higher completion rates in studies | Requires more discipline |
Strengths of each
Snowball — strengths
- Wins in weeks build momentum
- Simplifies bills fast
Avalanche — strengths
- Provably minimizes interest
- Fastest total payoff when followed
Worked example
With a $1,200 store card at 22% and a $5,500 card at 27%, avalanche attacks the $5,500 first and saves the most; snowball kills the $1,200 in months and frees a payment. The plan you finish beats the plan you abandon.
FAQ
How different is the cost really?
With similar APRs, small. With a wide APR spread and large balances, avalanche can save thousands.
Can I combine them?
A common hybrid: snowball one quick win, then switch to avalanche.