The Debt Snowball Method
Popularized by Dave Ramsey, the snowball method prioritizes debts by balance size — smallest to largest. You make minimum payments on everything and throw all extra cash at the smallest debt. Once it is gone, you roll that payment into the next smallest, creating a "snowball" effect.
Key advantage
Psychological momentum. Paying off small debts quickly creates visible progress and builds confidence.
The Debt Avalanche Method
The avalanche method prioritizes debts by interest rate — highest to lowest. You pay minimums on everything and direct all extra money to the highest-rate debt. Mathematically, this minimizes total interest paid.
Key advantage
Mathematically optimal. You always pay the least total interest, which means you get out of debt faster.
How to Choose
Choose snowball if: You have struggled to stick with financial plans in the past. The early wins keep you motivated when the journey feels long.
Choose avalanche if: You are disciplined and want to minimize every dollar of interest. The math is on your side, and over large balances the savings are significant.
Run both strategies with your real numbers
Our Debt Payoff Planner compares snowball and avalanche side by side. See the exact difference in months and dollars.