Avalanche vs. Snowball: Which Debt Payoff Method Wins?

Two methods, one goal. The avalanche pays off the highest-APR debt first to minimize interest. The snowball pays off the smallest balance first to maximize motivation. Here's how they actually compare.

The math: avalanche wins on paper

Example: $2,000 at 24% APR, $5,000 at 18% APR, $1,000 at 12% APR. Paying $200/month total plus $200 extra:

• Avalanche: 45 months, $2,015 total interest
• Snowball: 46 months, $2,148 total interest

Avalanche saves $133. Modest on small portfolios; significant on $30,000+ portfolios where the gap widens to $1,500+.

The behavior: snowball wins in studies

A 2016 study by Gal & McShane in the Journal of Consumer Research found that focusing on smallest balances was the strongest predictor of full payoff in real consumer data — stronger than starting balance, APR, or income.

How to choose

Pick avalanche if you're motivated by saving money and your highest-APR card isn't also your largest balance. Pick snowball if you've started and stopped before, or if your smallest debt is under $500 (kill it in week one).

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DebtFreely provides general educational information about debt payoff strategies. It is not financial, legal, or tax advice. Consult a qualified professional for advice specific to your situation.